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e. CAGR (compound average advancement return). A cash Trader is definitely thinking about The web return obtained yr just after calendar year, thus utilization of geometric is more appropriate. Therefore we would use geometric common for possibility free level and hazard high quality for every in the three divisions, as provided in exhibit 5 of your case.
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The management price is lower compared to the operation and depreciation charges. Subsequently, the overall price of ownership is higher compared to the cash. Thus, the general expense of administration is typically decrease compared to money charges.