Perform a sensitivity analysis. Here is the information you will need for your analysis:
2016 Average attendance: 16,500
2016 Average ticket prices: $56
2016 Average spending per fan per game: $25
Home games per year : 41
Optimistic projection: Attendance average will climb to 17,113 (arena capacity) for the next 10 years. Average ticket prices will increase by 2% each year, and per game average fan spending on concessions and merchandise will increase by 3% each year. On the expense side, per game costs will amount to $1,412,500 and increase by 0.25% each year. For discounting, use a rate of 5%.