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Finance division evaluates investments employing “Weighted Average Cost of Cash” (Wacc) for a hurdle fee to low cost the money flows for an investment decision opportunity. This Wacc is calculated from two subgroups; price of fairness and price of credit card debt, giving ideal weightage to every group.
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For Marriott, the price of capital is the whole from the management fee and working cost. The three principal working expenditures are the expense of building, financial investment and depreciation.
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