Using the information below: Please present in table form the 30 year present value of...
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Using the information below: Please present in table form the 30 year present value of this investment.
The Cowboys have decided to build the stadium on their own for $650M of upfront cash. What is the 30-year present value of this investment? In addition to the facts in the case study provided, assume the following -Stadium construction is completed for the start of the 2004 Season The Team borrows and spends the entire $650M in 2004 -The Team's borrowing rate is 6.5% Ticket prices increase by 1% per year after an initial increase that is consistent with new stadiums league wide Naming rights will be sold for 30 years at the same annual rate as the highest in the league (straight line over the 30 years) PSLs will be sold similar to that of the Tennessee Titans. The new stadium will have 350 luxury suites equally divided amongst 8-seat crown 1, 10 seat crown Il, 14 seat Crown II, 16 seat Crown I and 20 seat Crown lI (anticipated annual lease increase 3x for all suites) - -Assume Texas Stadium was fully depreciated and expenses to operate the stadium are 30% greater than at Texas Stadium Assume all future CBA's do not impact operating margin - Based on information given in the case you may make any and all assumptions in your answer including, but not limited to, % of seats sold, concessions revenue, operating expenses, etc. The Cowboys have decided to build the stadium on their own for $650M of upfront cash. What is the 30-year present value of this investment? In addition to the facts in the case study provided, assume the following -Stadium construction is completed for the start of the 2004 Season The Team borrows and spends the entire $650M in 2004 -The Team's borrowing rate is 6.5% Ticket prices increase by 1% per year after an initial increase that is consistent with new stadiums league wide Naming rights will be sold for 30 years at the same annual rate as the highest in the league (straight line over the 30 years) PSLs will be sold similar to that of the Tennessee Titans. The new stadium will have 350 luxury suites equally divided amongst 8-seat crown 1, 10 seat crown Il, 14 seat Crown II, 16 seat Crown I and 20 seat Crown lI (anticipated annual lease increase 3x for all suites) - -Assume Texas Stadium was fully depreciated and expenses to operate the stadium are 30% greater than at Texas Stadium Assume all future CBA's do not impact operating margin - Based on information given in the case you may make any and all assumptions in your answer including, but not limited to, % of seats sold, concessions revenue, operating expenses, etc
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