Finance in sports

You are tasked with calculating the property. needed to fund construction a. operation of a $22.5 million complex. The facility’s annual operating budget is forecast at $3.6 million, to be cove. by revenues from programs offered at the facility. A 30-year general obligation bond with a rate of 5.5% will be issued to pay for the facility’s construction costs. The net assessed value of property in the municipality is $725 million.

  1. Calculate the amount that must be set aside each year to meet the bond’s principal and interest obligations over 30 years. 2. Calculate the additional millage required to cover the project’s debt service. 3. For an owner of property with a total assessed value of S15,000, by how much will hisTher property increase?

Sample Solution