1 Period 0 1 2 3 4 5 6 7 8 9 10 CF Cumul. CF $(65,125.00) $ $13,000.00 $ $13,000.00 $ $13,000.00 $ $13,000.00 $ $13,000.00 $ $13,000.00 $ $13,000.00 $ $13,000.00 $13,000.00 $13,000.00 $ $ $ (65,125.00) (52,125.00) (39,125.00) (26,125.00) (13,125.00) (125.00) 12,875.00 25,875.00 38,875.00 51,875.00 64,875.00 PVIF@11.0% DCF 1.0000 $ 0.9009 $ 0.8116 $ 0.7312 $ 0.6587 $ 0.5935 $ 0.5346 $ 0.4817 0.4339 $ 0.3909 $ 0.3523 $ (65,125.0000) 11,711.7117 10,551.0916 9,505.4880 8,563.5027 7,714.8673 6,950.3309 6,261.5593 5,641.0445 5,082.0220 4,578.3982 2. Refer to Problem 1. What is the project's discounted payback period? 3. Refer to Problem 1. What is the project's NPV? 4. Based on the answers to Q1-3, should the project be accepted? Why or why not? CDCF S $ S S $ S S $ S S S 1. Project M has a cost of $65,125, expected net cash inflows are $13,000 per year for 10 and a cost of capital of 11%. What is the project's payback period (to the closest year)? years, 5. Briefly describe the benefits of new sport facilities for teams and owners and what methods they can use to build a new sport facility. (65,125.00) (53,413.29) (42,862.20) (33,356.71) (24,793.21) (17,078.34) (10,128.01) (3,866.45) 1,774.60 6,856.62 11,435.02 6. How does location affect the costs of a stadium or arena project? What are the pros and cons of locating a stadium downtown versus out near a highway?

1. Project M has a cost of $65,125, expected net cash inflows are $13,000 per year for 10 years, and a cost of capital of 11%. What is the project's payback period (to the closest year)? 2. Refer to Problem 1. What is the project's discounted payback period? 3. Refer to Problem 1. What is the project's NPV? 4. Based on the answers to Q1 -3 , should the project be accepted? Why or why not? 5. Briefly describe the benefits of new sport facilities for teams and owners and what methods they can use to build a new sport facility. 6. How does location affect the costs of a stadium or arena project? What are the pros and cons of locating a stadium downtown versus out near a highway