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For Marriott, the cost of capital is the overall from the management cost and functioning fee. The a few principal working prices are the expense of construction, expense and depreciation.
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Each individual resource is assessed regarding how unusual it is. A scarce source is a single that's not typically used by opponents.
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The NPV, however, won't take under consideration the depreciation as it is the price of money. However, this is part of your long-time period administration price, which also incorporates the maintenance rate as well as depreciation aspect.
Once you've figured out the expenditures and e-book value, you've to figure out the Funds appreciation. The Money appreciation could be the difference between the believed cost and the actual cost at the end of the yr.
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