Administration costs may involve extended-time period upkeep. Even when the resort is sold, these expenses can nonetheless be built into the cost. This allows The brand new owner to secure a truthful price tag devoid of thinking about these upkeep expenditures.
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Prevailing financial situation: It can be not likely that the government will maximize budgetary allocations.
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The NPV, nevertheless, does not bear in mind the depreciation as it is the price of funds. Nonetheless, this is an element on the extended-time period administration cost, which also features the upkeep fee along with the depreciation aspect.
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