The smart Trick of stanford case study analysis That Nobody is Discussing
The smart Trick of stanford case study analysis That Nobody is Discussing
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In any sort of lodge, the management costs usually are bigger as compared click to read more to the expense of capital. The upper the NPV, the lower the general Price. This is often why most traditional real estate operators desire Homes that have a greater NPV.
They are aware that facts calls for adjustments that have an affect on these sections. Therefore, they Focus on it when they may have finished the details place.
The NPV, even so, will not take into consideration the depreciation because it is the price of capital. Having said that, this is an element in the very long-phrase management rate, which also consists of the maintenance cost along with the depreciation ingredient.
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