Reference no: EM131963770

Arizona has recently announced the relocation of Bland Softball Field and the construction of a new stadium. The new softball stadium will include a steel structure to protect fans from inclement weather as well as underground locker facilities. A construction company will begin construction next year on the facility. The construction cost for next year will be $1.25M with costs increasing by 3.5% per year for the following three years. The operating and maintenance cost for the new stadium will be $25,000 per year beginning five years from now. The operating and maintenance cost will begin to increase twelve years from now 3 by $2,500 per year for eight years, then the cost will remain constant throughout the life of the softball stadium. Arizona’s men and women’s softball teams will begin playing in the relocated stadium five years from now. In order to finance the facility, Arizona will charge fans to attend the games. How much money in admission fees does Arizona have to make each year beginning five years from now in order to fund the project? Arizona currently employs a MARR of 7% per year. Assume a perpetual life. Compute all calculations to the nearest dollar.