Business, 27.04.2021 15:20 finlchey3860
The Fowlerville Fowls minor league baseball team are considering building a new stadium. They will only do so if their Senior Financial Analyst determines building the stadium would have a positive Net Present Value.
Using the data below, determine what the Year 0 cash flow would be?
a. $1,500,000 for the land the stadium would be built on. They bought this land in 2015.
b. Construction costs of $2,300,000 * $25,000 for a marketing study conducted last year to determine whether more fans would come to the games if they built a new stadium
c. $100,000 for additional street lights, access road improvements and parking lot for the new stadium
d. $100,000 for an electronic video sign in front of the building and additional signage around the city
e. $1000 for a trip taken by team management last year to see a similar stadium in Wooster, Ohio.
Answers: 3
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