In any sort of hotel, the management charges tend to be better when compared to the cost of cash. The upper the NPV, the reduce the overall Price. This is certainly why most traditional real estate property operators desire Homes which have a greater NPV.
The NPV, having said that, isn't going to take under consideration the depreciation as it is the price of cash. Having said that, this is a component on the prolonged-time period management charge, which also contains the upkeep rate as well as the depreciation factor.
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