Hi there need help with question 4 below

1. Angel Seafood Limited (hereafter known as "Angel") ordinary shares are listed on the Australian Securities Exchange (ASX) following an Initial Public Offering (IPO) in 2018. Angel is a South Australian-based producer of organically certified premium oysters. Since the IPO Angel has acquired substantial parcels of water leases in which they plan to grow high-quality export oysters. However, the unexpected high demand for its oysters has prompted Angel to consider upgrading to a larger oyster boat for its oyster beds located at its main facility at Coffin Bay in South Australia. According to the ASX announcement with the Date: 15/04/2019 and Headline: 'Appendix 4C - quarterly' [The Announcement], Angel's 10.75 hectares of waters at Coffin Bay are stocked with substantial numbers of pristine, high- quality oysters. Upgrading the boat will allow a more efficient oyster-harvesting process and more quickly reach positive cash flows. However, the cost of replacing the old boat with a new boat, the increased operating costs and additional capital expenditure in oyster dredges is substantial. Therefore, before Angel decides to upgrade the boat a financial analysis that considers the costs and benefits must be performed to determine if it will contribute to increasing the wealth of Angel shareholders. The following paragraphs contain a substantial amount of information that has been gathered from across the business and it is your job to determine which information is relevant to the analysis.

2. You are employed in Angel's corporate finance department and have impressed senior management with your aptitude for financial analysis. This talent was developed through the practice-oriented assignments that you completed at University. You recall how exciting it was learning about publicly-listed companies by searching and reading company announcements made to the Australian Securities Exchange (ASX). A number of staff have complained that the current boat is outdated and too small and said to the Chief Financial Officer (CFO), "You're gonna need a bigger boat". The CFO has asked you to perform a financial analysis of the new boat using a purpose-built preformatted EXCEL spreadsheet. You will also search through public documents to identify some of the assumptions that will be required in your financial analysis. Your analysis will be provided to the Board of Directors who will formally decide whether to proceed with the new boat, based largely on your recommendation.

3. After spending $73,000 researching a range of oyster boats, Angel has identified one particular new 24-metre long oyster boat that costs $2,800,000. Angel plans to name the new vessel the Angel 7, continuing the numbering sequence used on its other vessels (See Figure 3 of The Announcement). The Angel 7 would also require the fitting of $300,000 worth of oyster dredges before entering operations. The directors are accountable to the shareholders and so a rigorous financial analysis is necessary to be confident that the large capital investment in the Angel 7 is justified.

4. The Angel 7 is extremely fuel efficient and has an annual fuel expense of $60,000 compared to the existing, smaller boat's annual fuel expense of $75,000. Insurance of the existing boat costs $55,000 per year. To insure the Angel 7 also costs $55,000 p.a. Angel's insurance premiums are paid in cash at the end of each year.