5 Simple Techniques For hbr case solution

5 Simple Techniques For hbr case solution

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When the five years are more than, the funds is going to be paid in two types: the initial is actually a money outflow with the Marriott properties, and the second is really an equivalent return. Regardless of whether the assets stays in precisely the same type, the second possibility is commonly most well-liked.

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For the objective of determining the period of time to get when compared for danger totally free return and danger quality, investment decision lifetime of the undertaking must be regarded. For the reason that lodging property, like resorts, experienced lengthy practical lives, return on extended-time period federal government bonds needs to be useful for lodging calculations, which should be through the period 1926 to 1987 (exhibit 5 with the case) as this properly displays The underside line nature of return having a long-term view visit our website which includes all abnormalities during this period.