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When the 5 years are around, the cash is going to be compensated in two sorts: the very first is often a money outflow from the Marriott Houses, and the second is definitely an equivalent return. Even though the assets stays in precisely the same kind, the 2nd choice is usually chosen.
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In any type of lodge, the management fees usually are greater when compared to the cost of funds. The upper the NPV, the lower the overall Price. This is why most traditional housing operators like Qualities which have a greater NPV.
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The NPV, nevertheless, doesn't take into consideration the depreciation since it is the price of capital. Nonetheless, this is a component on the prolonged-time period management fee, which also involves the upkeep price and the depreciation factor.
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