The 5-Second Trick For ivey case solutions
The 5-Second Trick For ivey case solutions
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Most resort operators will only target the present value of the Houses, or the NPV. They do not normally consider the lengthy-time period upkeep service fees, that has a massive effect on the prolonged-expression upkeep cost of the hotel.
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The administration payment is lower compared to the Procedure and depreciation charges. Because of this, the overall price of possession is larger in comparison with the capital. For that reason, the overall cost of administration is often lower when compared to the capital fees.
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Yet one more variable that has a immediate effect on the overall price of possession is definitely the management service fees. They're the fees that Marriott motels obtain from their attendees at time they remain in the lodge. These administration fees are not likely taxes but are an incentive to maintain the visitor's rooms occupied.
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