5 Simple Statements About ivey case solutions Explained

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The NPV, having said that, will not take under consideration the depreciation as it is the cost of cash. However, this is an element of the very long-expression administration price, which also contains the upkeep payment as well as depreciation ingredient.

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Most lodge operators will only focus on the current value of the Homes, or the NPV. They do not commonly consider the lengthy-expression routine maintenance expenses, which has a huge impact on the very long-phrase routine maintenance expense of the lodge.

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The following factor to consider is The provision of rooms during the peak period. The reality that the inns are in a position to support an enormous amount of people throughout the hectic moments implies that they have larger total occupancy charge than the normal periods.

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