1. What does the prototype store measure? What is it used for? 2. There is a statement on p. 223 that the people involved in coming up with the capital projects had an overall capital budget and they were reluctant to go beyond that amount because equity analysts might consider that this would make Target a riskier investment. Explain the basis of that concern. 3. In calculating NPV the analysts for Target broke it up into two parts: NPV for store sales and the NPV for credit card sales. Target used a higher discount rate for store sales and a lower discount rate for credit card sales. Why did it do that? Explain. 4. The analysts for Target used the same discount rates for all the projects. But clearly some projects are riskier than others. What explains why Target didn't adjust the discount rate? Explain.