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The NPV, even so, isn't going to take into consideration the depreciation because it is the price of funds. On the other hand, this is a component of your lengthy-phrase management rate, which also consists of the upkeep rate and the depreciation component.

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Most lodge operators will only concentrate on the present worth of the properties, or the NPV. They do not ordinarily evaluate the extended-expression maintenance costs, that has a massive impact on the long-phrase servicing price of the lodge.