On Sat, 20 Feb 2021 17:35:35 +1000, Alex Goodwin
<xxxxxx@multitel.com.au> wrote:

>On 20/2/21 6:21 am, xxxxxx@quibell.org.uk wrote:

>>Not sure that mixing economic systems works (i.e. working out the
>>mortgage in GT while paying life-support and cargo costs in MgT2).

>I was digging out basic comparison gubbins from GT, since I knew I would
>need a risk-free rate to build up the overall weighted average cost of
>capital (WACC).

>>Mortgages in MgT2 work a similar way as the rest of the Traveller i.e.
>>you pay 1/240th of the purchase price for 12 months in every year for
>>the next 40 years. Total cost of the ship is thus twice the build
>>price. This works out at about a 1.8% return on the banks' investment.
>>Or a 3.98% mortgage interest rate on repayment terms. MgT2 doesn't
>>mention the deposit, which might be why the interest rate is lower.

>Thanks for pointing out the disconnect.  In GT:FT, the monthly payments
>are the same (1/240th of purchase price) but the amount financed is
>lower (at most 80% of purchase price), which inflates the debt rate. 
>Carrying the lower mortgage premium through drops the required return on
>equity to 6.96% pa and WACC to 4.58% pa.

Actually, I think Ewan got it slightly wrong, here - I distinctly
recall from early Traveller that there was a 20% down-payment and then
that you did pay 1/240 in each of 480 "monthly" payments, which makes
the total purchace price of the ship 220% of list. Whether that
carried over into late Traveller (including Mongoose), deponent sayeth
naught.