5 Simple Statements About hbr case solution Explained
5 Simple Statements About hbr case solution Explained
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The worth based on applying this method may not be dependable as this method utilizes the business’s monetary facts i.e. Earnings in advance of fascination tax depreciation and Amortization (EBITDA), which could be manipulated because of the Group for exhibiting a constructive effectiveness of its business enterprise.
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The management charge is reduce than the operation and depreciation prices. Subsequently, the overall price of ownership is better in comparison with the money. As a result, the general cost of administration is often decrease compared to capital fees.
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For Marriott, the expense of capital is the overall in the administration price and working charge. The 3 key operating costs are the cost of development, expense and depreciation.