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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 yearround performances. An old theater in the city center is for sale for $ million, and an initial costs analysis has revealed that to get the theater up and working would require another $ million. The average operating costs for the planned activities is estimated to be $ million per year. The ticket sales are estimated to be $ million per year for the next years. The theater will need major renovation after years, and the residual value at that time will be $ million, considering the increase in real value of city property over the past several years. Do you recommend that Classic Performer purchase this property? Why?
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