Comment on the following scenario:
Brittany Ferries launches an investment In the spring of 2004, Brittany Ferries, the cross-Channel ferry operator, launched a new ship. The ship had cost the business about £100m. Although Brittany Ferries is a substantial business, this level of expenditure is significant. Clearly, the business believes that acquisition of the new ship will be profitable for it, but how would it have reached this conclusion? Presumably the anticipated future cash flows from passengers and freight operators will have been major inputs to the decision. The ship was specifically designed for Brittany Ferries, so it would be difficult for the business to recoup a large proportion of its £100m should these projected cash flows not materialise.