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The management price is reduce compared to the Procedure and depreciation expenditures. Consequently, the overall expense of possession is larger in comparison with the cash. Consequently, the overall cost of management is usually decrease when compared to the capital fees.
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The NPV, however, won't take into account the depreciation since it is the cost of capital. On the other hand, this is a component of the lengthy-term administration cost, which also features the maintenance cost plus the depreciation aspect.
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