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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. $2,325,000$2,300,000$4,500,000$4,520,000$2,500,000
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