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The nonprofit Classic Performer, for which you serve as financial director, is considering purchasing a space for year - round performances. An old theater in

The nonprofit Classic Performer, for which you serve as financial director, is considering purchasing a space for year-round performances. An old theater in the city center is for sale for $80 million, and an initial costs analysis has revealed that to get the theater up and working would require another $20 million. The average operating costs for the planned activities is estimated to be $5 million per year. The ticket sales are estimated to be $10 million per year for the next 10 years. The the-ater will need major renovation after 10 years, and the residual value at that time will be $90 million, considering the increase in real value of city property over the past several years. Do you recommend that Classic Performer purchase this prop-erty? Why?

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