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The NPV, nonetheless, won't take into account the depreciation because it is the cost of funds. Nonetheless, this is part on the extensive-expression management fee, which also includes the upkeep price plus the depreciation factor.
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As in almost any lodge, the management payment will probably not be specifically equal on the money Price. The management fee is generally tied into the lodge's earnings. Having said that, the lodge's earnings are going to be lesser compared to official source the capital Hence the management cost is usually bigger.
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