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A 1 5 , 0 0 0 - seat basketball arena that draws professional teams to the city is being built by the city administration

A 15,000-seat basketball arena that draws professional teams to the city is being built by the city administration as a means of promoting economic growth. The arena will probably cost $300 million to build. The $1 billion operating budget of the city. The city intends to provide teams with a monetary incentive to visit the city by letting them keep all proceeds from ticket sales, parking, and advertising at the new facility for ten years. They will also receive a 15-year property tax waiver. Assume you are the city's finance officer. Regarding the capital project, the city council is inquiring about the cost-benefit analysis (CBA). To assess the project's costs and advantages, kindly provide your PLAN, which is a thorough, step-by-step process rather than an actual data analysis. In this scenario, what would the analysis's decision rule be? Which (long-term) finance strategy would you recommend? How come? Keep in mind that the council members lack expertise in financial and CBA programs.

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