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George, a good friend of yours from high school, is attending Sheldon University, where he enjoys playing on the school's Divislon III soccer team. You

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George, a good friend of yours from high school, is attending Sheldon University, where he enjoys playing on the school's Divislon III soccer team. You love going to his games to cheer him on. Unfortunately, the school is experiencing financial stress, and it recently shared its plan to discontinue its soccer program, along with a few other sports, beginning next academic year, Obviously, George is upset about this news, as are many of his friends. You wonder how bad the financial situation must be for the university to even consider making this move. (b) Your answer is correct. You recently found an inside track to some of the other assumptions the university used in making its decision, including the following. - All current athletes in these programs (and their non-athlete friends) will stay at Sheldon to complete their degrees. - All coaches specific to these sports will be laid off. - All current athletic facilities specific to these sports will be kept and minimally maintained in the hope that the sports will be reinstated in the future, when the university's financial health returns. Based on these assumptions and the following additional information, calculate the financial impact of this decision for one yeac, (Enter loss using either a negative sign preceding the number e.3. -45 or parentheses e.3. (45).) You believe that some of the above assumptions are not reasonable. For example, you know already that George is transferring to your college so he can play soccer there, and you are certain that many of the other athletes are thinking about a similar move. You believe that at least 50% of Sheldon's current student-athletes will leave Sheldon University, and 25% of the non-athlete friends will leave, as well. If these new assumptions are used, does it change your view of the university's decision? In other words, is the university justified in its decision to discontinue these sports based on quantitative analysis only at this point? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net annual cost savings (loss) Given the new assumptions, the university is financially by dropping these athletic programs. eTextbook and Media Attempts: 2 of 3 used

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