The Portland Stallions professional football team is looking at its future revenue stream from ticket sales. Currently, a season package costs $425 per seat. The season ticket holders have been promised this same rate for the next five years. Six years from now the organization will raise season ticket prices based on the estimated inflation rate of 3.5%. What will the season tickets sell for in six years?
The Portland Stallions professional football team is looking at its future revenue stream from ticket sales. Currently, a season package costs $425 per seat. The season ticket holders have been promised this same rate for the next five years. Six years from now the organization will raise season ticket prices based on the estimated inflation rate of 3.5%. What will the season tickets sell for in six years?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The Portland Stallions professional football team is looking at its future revenue stream from ticket sales. Currently, a season package costs
$425
per seat. The season ticket holders have been promised this same rate for the next
five
years.
Six
years from now the organization will raise season ticket prices based on the estimated inflation rate of
3.5%.
What will the season tickets sell for in
six
years?
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