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Suppose a new franchise is planning to build a stadium. Assume that the team expects to sell an average of 6 0 , 0 0

Suppose a new franchise is planning to build a stadium. Assume that the team expects to sell an average of 60,000 tickets per game at an average price of $75 each, and play 17 games per season. There is a proposal to build a stadium at a cost of $600 million, which will be spent in four equal parts over four year: 2021(years 0),2022,2023 and 2024. The stadium is planned to open in 2025 and life of the stadium is expected to be 25 years from the date of opening. Assuming a discount rate of 10%, what is the net present value of the stadium investment?

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