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In any sort of hotel, the management charges usually are bigger as compared to the price of funds. The upper the NPV, the decreased the general Value. This is why most common real estate operators desire Attributes that have a higher NPV.

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The NPV, nonetheless, would not take under consideration the depreciation since it is the expense of capital. However, this is a component of your long-phrase management cost, which also incorporates the maintenance cost and the depreciation factor.

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