Brad Winston is the owner and operator of Fishing Unlimited, a charter fishing business operated out of Oregon Inlet, NC. Brad has been taking groups of guests offshore to fish for tuna and marlin for over 15 years. He purchased his current fishing boat when he started the business, but now believes that a larger and better outfitted vessel would allow him to increase the rate he charges per charter. Currently he can carry a maximum of 6 guests while the larger boat will carry up to 8. The larger boat would also require him to take 2 deck hands on each outing, providing better service to his customers. Cost data for Brad's business is shown in the table below.

Fishing Unlimited Annual straight-line depreciation on boat $ 8,300 ($175,000 original cost - $90,000 estimated resale value/20 years) Fuel Cost (per hour) 50 Insurance Premium (annual) $ 1,900 Maintenance and Repairs (annual) $ 3,500 Fishing Tackle and Gear (original cost) $ 7,000 Tackle and Bait (per guest) $ 20 Deck Hand wages (per hour) $ 20 Dock Fees (annual) $ 2,400 Captain's License (annual) $ 200 Food and Beverages (per guest) to 25 Professional Fees (per year) $ 750 Dock Utilities (annual) $ 1,200\f