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The worth decided working with this method might not be when compared with assets or enterprise value of other firms as the companies might have distinctive accounting policies In spite of working in exactly the same industry.

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The NPV, having said that, isn't going to take into account the depreciation because it is the cost of funds. Having said that, this is part of your extensive-phrase management fee, which also involves the upkeep price as well as the depreciation component.

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