what is the net present value of the stadium investment if the new stadium ticket prices grow at 2% per year while in the old stadium ticket prices would grow at 1% per year ?
Suppose a team operates in a stadium with 75,000 capacity and currently charges $85 per ticket, and plays 10 games a seasons to a sell out crowd. The proposal is to build a new stadium, at a cost of $600 million. Assume that construction would require $200 million to be spent immediately and $200 million each in years 1 and 2. If the new stadium is not built, the
With a discount rate of 5%, what is the
A) 99.05 million
B) 15.88 million
C) 125.42 million
D) 428.34 million
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