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Two outdoor facilities are being considered for the upcoming student Olympic football event in Montreal, 3 years from now. The ticket price is fixed for
Two outdoor facilities are being considered for the upcoming student Olympic football event in Montreal, 3 years from now. The ticket price is fixed for the event at $150/person payable in the event year. Facility A requires a non-refundable deposit of $250,000 and will hold 15,000 people for the event. Facility B does not require a deposit but holds only 13,000 people. If the event sells out in either facility, which facility should be chosen based on a present worth analysis, if the interest rate is 10%? Select one: O a facility B with a net present worth of $1.940,458 O b. facility A with a net present worth of $1.440,458 C. facility A with a net present worth of $1,215064 O d. facility B with a net present worth of $1.465.064
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