The topic of replacement cost is a subject I wrote on several years ago; however, I think it’s an important topic for marina owners and one worth revisiting. Whether you’ve recently completed a total rebuild of your marina or are beginning to realize that the life of your current docks is finite, taking a good look at the future replacement cost is an exercise worth doing. It makes good business sense and will help you better plan and prepare for the future of your marina.
The question for many marina owners is “what will it cost to replace our docks in ‘x’ number of years and how will we fund it?”
Although there are a number of variables that will affect the answer to this question, the heart of the question can be answered by calculating the time value of money and the future cost of a marina rebuild.
Here is a list of the variables that you’ll need in order to make a reasonable estimate.