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By way of example, while vacation houses and professional Houses have hardly any depreciation, most real estate does have a substantial number of depreciation.

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For Marriott, the cost of capital is the overall from the administration cost and functioning rate. The a few most important operating fees are the expense of building, expense and depreciation.

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When the 5 years are in excess of, the cash might be compensated in two forms: the primary can be a hard cash outflow from the Marriott Houses, and the 2nd is surely an equal return. Even though the residence stays in the identical kind, the second solution is often desired.

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