CAPITAL, VOYAGE AND OPERATING COST OF A SHIP
CAPITAL COST- It depends on mainly two things. First is How the ship is financed. If financed by loan, then it will depend on Size of loan Source of loan Interest rate Terms of loan Final price of the ship will be; Final Price= Cash price + Interests= Cash price+ n*Installments Second capital cost is Depreciation- Deprecation refers to two very different but related concepts. First is decline in value of assets and Second is allocation of the cost of tangible assets to periods in which the assets are used. Depreciation cost depends on Cost of asset Expected salvage value of asset Estimated useful life of asset A method of apportioning the cost over such life OPERATING COST- It consists of the following Crew Cost:- Crew cost includes direct and indirect costs. Direct cost includes Wage cost Travel cost On Board victualing Training Union fee Indirect cost includes Recruitment/ Selection of process Medical test Social dues...