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e. CAGR (compound typical growth return). A cash investor is in fact serious about the net return obtained year following year, thus use of geometric is a lot more suitable. That's why we would use geometric average for risk no cost price and danger high quality for each in the three divisions, as specified in exhibit 5 on the case.

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Yet one more variable which has a immediate impact on the general cost of possession would be the administration charges. They're the charges that Marriott hotels collect from their visitors at the time they stay in the hotel. These management costs are not really taxes but are an incentive to keep the visitor's rooms occupied.

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