The NPV, on the other hand, won't take into account the depreciation as it is the price of cash. Having said that, this is part with the prolonged-time period administration rate, which also consists of the maintenance fee as well as depreciation factor.
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On the other hand, this is predicted to vary as being the lodge appreciates in price, since the administration rate represents The existing worth of the property. Hence, the once-a-year rate will likely be greater when compared to the management charge.
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