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Short term returns on Treasury Expenses really should applied as basis for cafe’s and contract services division’s chance cost-free price and hazard quality mainly because Those people property had shorter useful life. This must also be the from 1926-1987 (exhibit 5 from the case).

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After the five years of occupancy, these expenses are offset by the profits from the hire, in addition a profit with the reduction part, and A few other charges are included. Consequently, the real estate property operator won't attain in the occupancy.

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