The NPV, nevertheless, will not take into account the depreciation as it is the price of money. On the other hand, this is an element on the prolonged-term administration price, which also involves the maintenance payment and also the depreciation aspect.
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The administration charge is reduce when compared to the Procedure and depreciation fees. As a result, the general expense of possession is larger in comparison with the funds. Thus, the overall cost of management is usually lessen in comparison to the cash prices.
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