Dome Renovations (p03)
Renovations to the Carrier Dome will cost about $118 million. Suppose that the upgrades all have a useful life of 30 years, and that the University uses an 8% interest rate in present value calculations.
- Please draw an appropriate cash flow diagram and calculate the annual levelized cost of the upgrade to the nearest $100,000. You may assume $118 million is the present value of all of renovation costs (that is, it is already the PV of the actual costs).
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Peter J Wilcoxen, The Maxwell School, Syracuse University