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The NPV, nevertheless, won't take into account the depreciation because it is the cost of funds. Even so, this is an element on the prolonged-time period administration cost, which also contains the maintenance cost and the depreciation ingredient.
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As in almost any lodge, the management fee will probably not be specifically equivalent towards the cash Price. The management rate is generally tied to the lodge's financial gain. On the other hand, the resort's earnings might be lesser as compared to the money Hence the administration payment is often larger.
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