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Suppose it costs $400 million to build a new football stadium. It is expected to take 4 years to build, with the construction costs being
Suppose it costs $400 million to build a new football stadium. It is expected to take 4 years to build, with the construction costs being evenly distributed over these four years (all costs incurred at the end of each year, so the first cost in the timeline is one year from now). Upon completion, the stadium will yield benefits of $40 million per year for 100 years (with the first benefit in the timeline being FIVE years from today). At an interest rate of 6%, is this project worth it? (you must show your work for full credit)
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