What is the initial cost of the scoreboard

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The franchise expects to sell an extra $20,000 worth of sponsorships a year 1with the new scoreboard. Increases in fan satisfaction are also expected to increase ticket revenue by $10,000 a year. The scoreboard will also increase maintenance and utility costs by $2,000 a year.

a) What is the initial cost of the scoreboard?

b) What is the incremental cash flowr of the scoreboard for the first year (including the tax benefits]?

c) What is the project's payback period?

d) What is the project's discounted payback period?

e) What is the project's NPV?

i] What is the project's IRR?

Reference no: EM133061872

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