5 Essential Elements For hbr case solution

5 Essential Elements For hbr case solution

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Management costs could also consist of extensive-time period routine maintenance. Regardless if the lodge is sold, these expenses can nevertheless be built into the price. This enables The brand new owner to secure a honest price without thinking about these routine maintenance expenses.

Then, with all these expenditures and the Projected cash stream, you estimate your return around the property. You should also involve depreciation and amortization (depreciation) with your estimate, mainly because it is cash improvements that pay off after some time. and amortization is just the incremental Expense of your respective advancements after a while.

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