Appraisal of fishing vessel economics using risk analysis

The engineering economy approach is presented. The relevant measures of profitability are identified and given. The probabilistic approach for evaluating fishing vessel economics is presented. Particular emphasis is placed on the variabilities of both revenues and expenditure as well as their statistical parameters. The effect of uncertainties in the prediction of both revenues and expenditures on the profit margin is investigated. It is shown that it is possible to determine the minimum revenue required to satisfy an acceptable risk.<>