Golden Cup PLC. is the company responsible for managing and maintaining all sports facilities at France. Given that France is hosting the 2024 Olympics, The CEO of Golden Cup PLC. is considering plans to renovate spectator seating of the Stade de France or replace with a new seating. Currently, Stade de France has a capacity of 78,338 spectators. in 2024, the marketing manager of Golden Cup PLC. forecasts to sell 100,000 tickets a year with an increase of 5% each year through 2030, at an average price of 160. The spectator seating of Stade de France is currently fully depreciated and has a salvage value of 4,000,000 if replaced. If spectator seating of the Stade de France is renovated, the costs of renovation are to be capitalized and depreciated over the useful life of the spectator seating of the stadium. The initial investment of renovating the spectator seating of the Stade de France is 40,000,000, while the initial investment of replacing with a new one is 60,000,000. Both alternatives have an estimated useful life of 7 years, after which the estimated disposal value would be 7,000,000 and 15,000,000 of the renovation and replace alternatives, respectively. The accounting department at Golden Cup PLC. has estimated that the cash operating costs per ticket is 80 and 50 for the renovate and replace alternatives, respectively. Capital investment in each capital investment alternative would qualify for writing-down allowances at 20% per annum on a reducing balance basis. Balancing allowance can be claimed where applicable. For simplicity, assume no change in prices or costs in future years. The investment will be made at the beginning of 2024, and all transactions thereafter occur on the last day of the year. The minimum required rate of return for Golden Cup PLC. is 12%. Golden Cup PLC. pays a 20% tax rate on all income. Tax is paid one year in arrears.

required calculate Net present Value and payback period for the 2 alternatives abd suggest which alternative to choose.