Question
UNLV will be hosting an annual football camp for High School students. The camp will run for four weeks in the summer with each individual
UNLV will be hosting an annual football camp for High School students. The camp will run for four weeks in the summer with each individual session lasting 1 week. The summer camp will be hosted by UNLV and will have access to most of UNLV facilities. The expected attendance of each session is 200 high school students. The scope should include marketing, logistics, schedule of events, training, and the procurement of all needed equipment for the camp. Your main goal is to provide an exciting and educational week for the students and to instill the students with the UNLV culture and values. The executive team is excited to see what you come up with. The camp director would like to build camp specific facilities in 10 years, paid for from camp proceeds collected during the first 8 years of camps.
Financial Considerations
The camp director has hired a financial management consulting firm that has designed an investment plan yielding 7.25% effective annual interest rate.
The facility construction cost is estimated to be $3,000,000 in today's dollars.
The annual inflation rate is estimated to be 2.75%.
Current camp costs, which are fully offset by the fees charged to the campers, are $200,000.
1. What is the future cost of the facilities construction ?
2. How much money should be collected each year to cover future construction cost and camp fees? What is the per student increase requires to fund the constructions? For ease of modeling assume all the transactions occur at year end.
3. After people heard of the Director's plans. There was a donation of $250,000 in the third year of the camp. Make table that shows the required per student increase for each year of camp. For ease of modeling, assume all transactions occur at year end.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started