Question
Suppose Philadelphia is offered the chance to host the 2026 Super Bowl, provided it makes significant upgrades to Lincoln Financial Field as well as several
Suppose Philadelphia is offered the chance to host the 2026 Super Bowl, provided it makes significant upgrades to Lincoln Financial Field as well as several practice facilities.The expenses will come to $100M per year for five years. For simplicity, assume that the expenses begin immediately and are paid in one-year intervals. The city expects hosting the Super Bowl to generate $500M in added revenue the year the game is played, $20M in added tourism the next two years, and an additional $10M per year for the five years after that. Again, for simplicity assume that the revenues come in lump sums at one-year intervals. If interest rates are 5% for the entire period, does it pay for Philadelphia to host the Super Bowl? Show your reasoning.
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