The Williamston Wingnuts minor league hockey team is considering building a new arena in Downtown Williamston. They have decided they will only build the arena if it will be Net Present Value positive based on 5 years of cash flows. The teams accounting department has compiled the following costs:

• $2,000,000 for the land the arena would be built on. They bought this land in 2010.
• Construction costs of $28,000,000
• $50,000 for a marketing study conducted last year to determine whether more fans would come to the games if they built a new arena.
• $50,000 for new signage in front of the building and around the city that will only be needed if the arena is built.
• $500 for a trip taken by team management to see the Portland (Mich.) Puckheads new arena at a game last season to gather design ideas.
• $50,000 for street lights in the parking lot and on Grand River Ave. that will only be needed if the arena is built.
• $100,000 in additional Net Working Capital will be needed at the beginning of the project, 60% of which will be recovered at the end of the project.

What is the Total Year 0 cash flow for this project?

Multiple Choice

• $28,000,000

• $30,250,500

• $30,250,000

• $28,200,000

• $28,300,000