If Opulent Oceans proceed with the Azure Majesty project the spare parts inventory must be increased by $2.25 million from existing levels and purchased immediately. Having spare parts readily available reduces the delay time between journeys. In addition to the major refurbishment costs, the Azure Majesty will require minor maintenance of $1.58 million per annum. Such maintenance will take place after the return of each journey. In order to operate the cruise ship, the NSW government require each ship to purchase a clean water management and safety certificate to keep Sydney's water clean. This certificate will need to be purchased immediately. Without the certificate the ship will not be allowed to operate. Such a certificate costs $395,000 and lasts for a four year period. Upon expiration the certificate must be renewed otherwise each ship will not be allowed to operate in the Sydney harbour. The certificate is not an asset, however, it can be claimed as an operating expense in the year in which the certificate was purchased. Based off recent market data that you have obtained from the Global Maritime Agency, it is projected that Azure Majesty and the bow thruster will be worth a total of $28 million in 5 years' time and a total of $24 million in 10 years' time. In both cases, the bow thruster represents 10% of the total quoted figures and the cruise ship represents the remaining value. Jenny gave you a folder from the Australian Tax Office (ATO) when you first started. Under taxation ruling 2000/18 "Passenger ships", the effective life of cruise ships like the Azure c 16. If Opulent Oceans proceed with the Azure Majesty project the spare parts inventory must be increased by $2.25 million from existing levels and purchased immediately. Having spare parts readily available reduces the delay time between journeys. In addition to the major refurbishment costs, the Azure Majesty will require minor maintenance of $1.58 million per annum. Such maintenance will take place after the return of each journey. 17. In order to operate the cruise ship, the NSW government require each ship to purchase a clean water management and safety certificate to keep Sydney's water clean. This certificate will need to be purchased immediately. Without the certificate the ship will not be allowed to operate. Such a certificate costs $395,000 and lasts for a four year period. Upon expiration the certificate must be renewed otherwise each ship will not be allowed to operate in the Sydney harbour. The certificate is not an asset, however, it can be claimed as an operating expense in the year in which the certificate was purchased. 18. Based off recent market data that you have obtained from the Global Maritime Agency, it is projected that Azure Majesty and the bow thruster will be worth a total of $28 million in 5 years' time and a total of $24 million in 10 years' time. In both cases, the bow thruster represents 10% of the total quoted figures and the cruise ship represents the remaining value. 19. Jenny gave you a folder from the Australian Tax Office (ATO) when you first started. Under taxation ruling 2000/18 "Passenger ships", the effective life of cruise ships like the Azure