Assumptions:

Standalone	Store in a Store
Initial Investment	$ 2,400,000.00	$ 900,000.00
Life (years)	7.00	5.00
Customers per year	$ 200,000.00	$ 100,000.00
Customer bill per visit	$ 18.00	$ 14.00
Food and drink cost per customer	$ 1.30	$ 1.30
Other VCR as percentage of Sales	65%	46%
Total Fixed Costs per year (Excluding D)	$ 450,000.00	$ 350,000.00
Depreciation expense per year	Straight Line	Straight Line
Tax rate	18%	18%
CAPM Beta	1.3
Risk Free Rate	1.50%
Market Risk Premium	5.50%

Based on historic data, we can break the prospects for the Store in Store concept into 4 scenarios. These can be described as follows:

	Probability	Customers per year (K)	Customer bill per visit ($)	Other VC as percentage of Sales
Exceptional	15%	105	17	47%
Average	55%	105	15	46%
Slow	20%	90	11	45%
Poor	10%	85	10	45%
	100%

All other inputs are the same as the original assumptions.

1a. What is the expected NPV of the Store in Store concept?

1b. What is the expected IRR of the Store in Store concept?

1c. What is the standard deviation of NPV of the Store in Store concept?

Please show work in excel!!