Finance division evaluates investments working with “Weighted Ordinary Price of Money” (Wacc) as a hurdle charge to price cut the funds flows for an investment chance. This Wacc is calculated from two subgroups; cost of fairness and cost of debt, giving proper weightage to each team.
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For Marriott, the cost of capital is the entire weblink on the management price and running fee. The 3 most important working costs are the expense of development, expenditure and depreciation.