1. Assume that you have a $100 million capital constraint. Compute the profitability index for each project to determine a ranking based on value added per dollar of investment. Which projects could you undertake with the capital constraint?

EXHIBIT 15.7 | Economic Analysis Summary of Project Proposals Net Present Value Trade Area 10% Sales Decline ($000) Population Increase 2000-2005 Median Income % Adults 4+ yrs. college IRR 1239 27% Base Case NPV (5000) $16.800 $25.900 $20,500 $300 $15.700 1285 Investment ($000) $23,000 $119,300 $13,000 $23.900 $17.000 Gopher Place Whalen Court The Barn Goldio's Square Stadium Remodel 36 $4,722) ($ 16,611) ($4,066) ($4,073) ($7,854) Population 70,000 632.000 151,000 222.000 NA 9.8% 16.4% 8.1% 10.8% 45% 1794 396 $56,400 $48,500 $38.200 $56,000 $65,931 24% 16% NA 429 Source: Target Corporation, used with permission