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30 years ago, the Hamilton Bulldogs, an amateur hockey team, purchased an arena (the defender) from the city of Hamilton for $500,000. Due to the

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30 years ago, the Hamilton Bulldogs, an amateur hockey team, purchased an arena (the defender) from the city of Hamilton for $500,000. Due to the age of the facility, operations and maintenance costs for the next year are $15,000 increasing at 1 % per year. The arena could fetch $400,000 if sold sis-a price which is expected to increase at a rate of 10% ainually due to: real estate 'speculation. If the. minimum EUAC of a new arena (the challenger) is S100,000 use replacement analysis, to determine if the Buldogs should replace the arena in the next 3 years ifMARRSA LE eng (30 marks)

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