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In any type of resort, the administration charges are often greater in comparison with the expense of money. The higher the NPV, the decrease the general cost. That is why most regular real estate operators want Homes which have a higher NPV.
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For Marriott, the cost of capital is the whole of the administration rate and running payment. The 3 major running costs are the expense of building, expenditure and depreciation.
Working with a discounted dollars stream valuation is like using a spreadsheet and computing your net existing value, whilst the DCF utilizes a components which you can't replicate effortlessly all by yourself.
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