Question
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
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 | 17.00 | 47.0% |
| Average | 55% | 105 | 15.00 | 46.0% |
| Slow | 20% | 90 | 11.00 | 45.0% |
| Poor | 10% | 85 | 10.00 | 45.0% |
|
| 100% |
|
|
|
All other inputs are the same as the original assumptions (for example, depreciation is $100K per year for the Store in Store concept in each scenario).
What is the standard deviation of NPV of the Store in Store concept?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting For School Administrators Tools For School
Authors: Ronald E. Everett, Donald R. Johnson, Bernard W. Madden
3rd Edition
1610487710, 978-1610487719
