. For a vessel and its cargo valued at £2,000 insurance at 50 percent would cost £1,000,
and the freight would cost another £1,000, making the total cost to the owners £4,000.
Thus, on a voyage to and from America, assuming that the value of the cargo and vessel
remained the same on the return voyage, the total capital expenditure would be £8,000.
A 400 percent return on the original investment of £2,000 would, therefore, no more
than pay expenses.