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The NPV, having said that, would not keep in mind the depreciation as it is the cost of capital. However, this is part with the long-expression management fee, which also includes the maintenance charge as well as the depreciation component.
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For the goal of identifying the period to be in comparison for chance absolutely free return and hazard quality, expenditure life of the task needs to be viewed as. Simply because lodging belongings, like accommodations, had prolonged useful life, return on lengthy-expression federal government bonds should be employed for lodging calculations, which needs to be from your time period 1926 to 1987 (show five of your case) as this effectively demonstrates The underside line nature of return with a long term look at which includes all abnormalities all through this era.
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