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e. CAGR (compound normal development return). A capital investor is actually interested in the net return received calendar year right after year, So use of geometric is more ideal. That's why we would use geometric common for risk absolutely free fee and hazard premium for every in the three divisions, as specified in exhibit 5 in the case.

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Yet another component that has a immediate influence on the overall price of ownership would be the administration service fees. They're the fees that Marriott hotels collect from their friends at time they remain in the hotel. These management expenses are not really taxes but are an incentive to maintain the guest's rooms occupied.

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