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e. CAGR (compound typical development return). A cash Trader is definitely thinking about The online return acquired 12 months just after calendar year, thus use of geometric is much more suitable. Therefore we'd use geometric ordinary for risk absolutely free price and possibility top quality for each of your 3 divisions, as presented in show five with the case.

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The NPV, however, won't bear in mind the depreciation since it is the expense of cash. Having said that, this is part from the long-phrase management charge, which also involves the maintenance payment and also the depreciation aspect.

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