Assignment 10.4 Evaluating Property Purchase The nonprofit Classic Performer, for which you serve a financial director, is considering purchasing a space for year-round performances. An old theater in the city center is for sale for $80 million, and an initial costs analysis has revealed that to get the theater up and working would require another $20 million. The average operating costs for the planned activities is estimated to be $5 million per year. The ticket sales are estimated to be $10 million per year for the next 10 years. The theater will need major renovation after 10 years, and the residual value at that time will be $90 million, considering the increase in real value of city property over the past several years. Question(s) Do you recommend that Classic Performer purchase this property? Why?