Question
The Awesome FI320 students (ya, you read that right) minor league baseball team are considering building a new stadium. They will only do so if
The Awesome FI320 students (ya, you read that right) minor league baseball team are considering building a new stadium. They will only do so if their Senior Financial Analyst (that would be you) determines building the stadium would have a positive Net Present Value. Using the data below, determine what the Year 0 cash flow would be:
They bought this land the land the stadium would be built on in 2015 for $1,550,000. An international firm has just made an offer to buy the land for $2,000,000.
Construction cost of building the stadium is $2,300,000
$35,000 for a marketing study conducted last year to determine whether more fans would come to the games if they built a new stadium
$110,000 for additional street lights, access road improvements and parking lot for the new stadium
$110,000 for an electronic video sign in front of the building and additional signage around the city
$2000 for a trip taken by team management last year to see a similar stadium in Wooster, Ohio.
Question 14 options:
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$4,500,000
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$2,325,000
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$2,300,000
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$2,500,000
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$4,520,000
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