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In any type of lodge, the administration charges usually are better as compared to the price of money. The higher the NPV, the lessen the general Expense. This is often why most regular real estate property operators prefer Houses which have an increased NPV.
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The NPV, however, doesn't take into consideration the depreciation because it is the cost of capital. On the other hand, this is a component of your long-phrase management rate, which also features the maintenance charge plus the depreciation component.