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For Marriott, the cost of capital is the overall from the management cost and running price. The a few principal functioning fees are the price of design, expenditure and depreciation.
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Use of returns is often either arithmetic ordinary or geometric normal but geometric average is a lot more correct then arithmetic average as arithmetic ordinary is reflecting straightforward return in excess of a period of time on Original investment, regardless of the money attain from interval to period. Nevertheless, geometric ordinary demonstrates moved here compound return, that makes balance of investment price of former calendar year a theory base for calculation of next yr’s return i.
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