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In most cases, the small-phrase administration payment is linked to an extra proportion of appreciation, known as the IRR. The IRR is just the distinction between the lengthy-time period administration fee along with the extended-phrase lease.
The price of capital We now have taken was five percent. Following assuming the expense of funds of five p.c, we have thought of the perpetuity expansion design through which Now we have assumed the hard cash stream will likely be rising with the consistent advancement fee of around 2 p.c.
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