Question
The Tennessee Titans' new stadium will likely cost $2 billion. The team's marketing department believes the naming rights should sell for between $15 million and
The Tennessee Titans' new stadium will likely cost $2 billion. The team's marketing department believes the naming rights should sell for between $15 million and $17.5 million. The team is seeking a 20-year naming rights agreement. Relative to the contribution possible to offset the cost of the facility, what is the present value in 2022 dollars of a 20-year naming rights deal that is worth $15 million or $17.5 million? Rate is 7.5% Need values for both 15 and 17.5 million PV = FV/(1 + i) n is formula Values should only include the naming rights for 20 years
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