24-Apr-18

Taxes, Repairs, Management, Loss of rent, miscellaneous, Sinking fund, etc.

Eg.- construction equipment

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• Capital costs are fixed, one-time expenses incurred on the

purchase of land, buildings, construction, and equipment
used in the production of goods or in the rendering of
services.

• Capitalised value of a property is the amount of a money

whose annual interest at the highest prevailing rate of
interest will be equal to the net income from the property.

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3
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