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1 a:The initial price for a stadium is $350,000,000. There will be a 2% adjustment to the price, 1.6% discount to the price, and $95,000,000
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1. The initial price for a stadium is $350,000,000. There will be a 2% adjustment to the price, a 1.6% discount to the price, and $95,000,000 of revenue from the sale of previous equipment and land. Based on this, calculate the initial cost of the project. b. Using the answer from question 1, you have been provided projections that the present value of cash flow from the project will be $215,000,000. a. What is the Net Present Value of the project? b. With the current financing, should you build the stadium? Why or why not a:The initial price for a stadium is $350,000,000. There will be a 2% adjustment to the price, 1.6% discount to the price, and $95,000,000 of revenue from the sale of previous equipment and land. Based on this, calculate the initial cost of the project.
b: Using the answer from question one, you have been provided projections that the present value of cash flow from the project will be $215,000,000.
What is the net present value of the project?
With the current financing, should you build the stadium? Why or why not?
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