A Review Of hbs case solution
A Review Of hbs case solution
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After the 5 years are in excess of, the capital might be paid in two kinds: the primary is a hard cash outflow in the Marriott properties, and the next is an equivalent return. Regardless of whether the residence stays in the same form, the 2nd solution is often chosen.
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For Marriott, the price of funds is the total of the administration cost and functioning charge. The a few primary functioning fees are the price of development, investment and depreciation.
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Most resort operators will only deal with the current value of the Qualities, or the NPV. They do not ordinarily look at the lengthy-expression servicing expenses, that has an enormous influence on the long-time period upkeep price of the resort.
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