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The NPV, nevertheless, will not take into consideration the depreciation since it is the cost of funds. Having said that, this is a component of your very long-expression administration cost, which also includes the maintenance charge as well as depreciation element.
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The normal approach is just not precise mainly because in The present marketplace, properties Use a great deal more depreciation that doesn't go into consideration. The next method to consider the distinction between the e book benefit and the understood worth is by thinking about the lessen share depreciation and the upper charges.
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