However, this is expected to alter because the resort appreciates in worth, Considering that the administration fee signifies The existing value of the house. For that reason, the annual payment will also be increased compared to administration fee.
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The NPV, on the other hand, won't take into consideration the depreciation since it is the cost of funds. However, this is part with the very long-term administration payment, which also consists of the maintenance fee along with the depreciation component.
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Comparing the rate of your respective Marriott Resorts to that of the normal lodges may well look like a useless exercise, but you should evaluate the very long-phrase Positive aspects that a straightforward valuation will provide you with.
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