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In any kind of lodge, the management charges are generally larger as compared to the price of cash. The higher the NPV, the decreased the overall Value. This can be why most common housing operators like Attributes that have a greater NPV.

Finance division evaluates investments using “Weighted Normal Cost of Funds” (Wacc) to be a hurdle level to discount the income flows for an expenditure chance. This Wacc is calculated from two subgroups; price of equity and cost of personal debt, providing suitable weightage to each team.

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