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The NPV, nevertheless, doesn't take into account the depreciation as it is the price of capital. Nevertheless, this is part on the prolonged-expression management cost, which also incorporates the maintenance payment plus the depreciation element.

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The administration rate view it now is reduced in comparison to the Procedure and depreciation costs. Consequently, the general expense of possession is better when compared to the money. Hence, the overall price of management is often reduced than the capital expenses.

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