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The NPV, however, would not take into consideration the depreciation because it is the expense of money. On the other hand, this is an element on the extended-time period management cost, which also includes the upkeep cost as well as depreciation ingredient.
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Management expenses also can include extended-phrase servicing. Even when the resort is bought, these service fees can however be built into the value. This enables the new operator to acquire a good value with no taking into consideration these servicing expenditures.
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Comparing the speed of the Marriott Motels to that of the traditional hotels might appear to be a ineffective exercise, but you must evaluate the prolonged-expression Advantages that an easy valuation gives you.
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