a. Suppose the management fee of $350,000 does not get collected this year but instead the contract just gets extended one year so that no money comes in to the city this year, but next year the team pays $350,000 and $350,000 for each year until the end of the contract. (The article doesnt say how long the contracted management fee of $350,000 is in place or if the dollar value of the fee increases over time. For the purpose of answering this question consider a multi-year contract of x years so now it would be x+1 years and that instead of the payments starting today in year 0, the payments start one year from now in year 1.) Does the delay in payment make any difference since the city will still collect the $350,000 just at a later date? Explain.

b. The city anticipated collecting just over $470,000 in an added city sales tax at the stadium and the surrounding business. Suppose the city thought now thinks there is a 40% chance that the sales tax would bring $260,000 and a 60% chance that it might bring in $150,000 depending on when the limitations in business/crowds due to the virus subsides. Calculate the new expected value of the sales tax.