Question 4: Parts (a) and (b) have no maximum word limit. Part (c) must be a maximum of 200 Words. You have been asked t

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Question 4 Parts A And B Have No Maximum Word Limit Part C Must Be A Maximum Of 200 Words You Have Been Asked T 1 (81.44 KiB) Viewed 20 times

Question 4: Parts (a) and (b) have no maximum word limit. Part (c) must be a maximum of 200 Words. You have been asked to estimate the cost of a new luxurious extra-large cruise ship with a displacement (weight) of 100,000 tonnes to be built over the period 2022 to 2024, with approximately equal spend in each of the three years. Some of data required is provided in Table Q4 although the price Indices and capital costs must be calculated by first calculating values for 'X' and 'Y' from the last four digits of your student number (as per your student ID card) as illustrated in Table Q4.2. Table Q4.1: Showing the capital cost (in million US dollars at the time of building) and maximum displacement (weight) of cruise ships built over the last 50 years. Data on the shipbuilding price index has also been provided. Values of X and Y must be calculated using your student number according to Table Q4.2
Year Built 1971 1979 1987 2002 2009 2017 2018 2021 Shipbuilding Price Index 35 + 50 = 85 60 +50= 110 100 + 50 = 150 | 140 + 50 = 190 180 + 50 = 230 195 + 50 = 245 196 +50= 246 200 + 50 = 250 Cost ($'mill) 75 +41 = 116 88 +41 = 129 168 + 41 = 209 165+41 = 206 240 +41 = 281 500+ 41 = 541 202 +41 = 243 No Data Displacement (tonne) 64,667 33,333 53,333 33,333 46,667 66,667 43,333 No Data
Calculate the capital cost in pounds sterling (£) of the proposed cruise ship assuming that the rate of inflation over the period 2022 to 2024 is a constant 3% per year and that the exchange rate in 2021 was 1.35 $ per £. You should assume that the 6/10ths rule does NOT apply and instead use ALL the data in Table 4.1 to provide the most accurate estimate possible. [15 Marks]
Critically discuss factors which might impact the accuracy of this estimate and so how the accuracy might be improved without undertaking a large amount of additional design or moving to another method of estimating such as bottom up estimating. [5 marks]