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Business, 04.01.2020 04:31 Welcomes

Suppose new york wants to build a new facility to replace madison square garden. assume that the cost of building a new arena in midtown manhattan is $2 billion and that all the costs occur right away. also assume that new york will receive annual benefits of $100 million for the next 30 years, after which the new arena becomes worthless. does it make financial sense to build the new facility if interest rates are 5 percent?

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