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For the objective of analyzing the period of time to get when compared for risk totally free return and risk top quality, expenditure life of the project needs to be deemed. Because lodging assets, like hotels, experienced extended handy life, return on lengthy-term government bonds really should be employed for lodging calculations, which should be with the period 1926 to 1987 (exhibit five on the case) as this correctly displays the bottom line character of return having a long run perspective which includes all abnormalities throughout this era.
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