On Wed, Nov 5, 2014 at 1:10 PM, Phil Pugliese (via tml list)
<xxxxxx@simplelists.com> wrote:
>  On Tue, Nov 4, 2014 at 7:39
>  PM, Grimmund <xxxxxx@gmail.com>
>  wrote:
>
>  . . . unless you are planning to
>  build enough ships to reduce the
>  share of
>  the architect's fee per ship to something manageable.
>  But
>  that's still a bad financial
>  decisions.
>
>
>  Does that still apply if you're a megacorp building
>  the hulls in-house?

Yes.  Although a megacorp, or a local polity, may do the design work
internally and eat the cost.

If an architecture corporation designs a building for a customer, they
charges the customer for that work, and they pay the employees who do
the design work.  The difference is profit.

If an architecture firm  designs a building for itself, it is probably
not going to charge itself for the work, but they are still going to
have to pay the employees who do the design work.

Financing the design fee AND the ship means paying interest on the
design fee for the life of the ship's mortagage.  Essentially, you're
paying the design fee twice, and stretching the payments over 40
years.

You'd be far better off to float a separate loan.

dan

--

"Any sufficiently advanced parody is indistinguishable from a genuine
kook." -Alan Morgan