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The NPV, even so, isn't going to take into consideration the depreciation because it is the cost of capital. Nevertheless, this is a component from the long-phrase management charge, which also consists of the maintenance charge along with the depreciation factor.

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The traditional process is not exact because in the current industry, Homes Have a very whole lot additional depreciation that does not go into account. The second way to think about the distinction between the guide price as well as the realized value is by thinking of the lower share depreciation and the higher bills.

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