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based on the NPV and IRR, size of project, cannibalization of other stores' sales, store sensitivities, variance to prototype, customer demographics, and brand awareness impact
based on the NPV and IRR, size of project, cannibalization of other stores' sales, store sensitivities, variance to prototype, customer demographics, and brand awareness impact rate the five projects from most recommended to least recommended. explain how each of the considerations that follow influenced your decision.
Exhibit 7 Target Corporation Economic Analysis Summary of Project Proposals Trade Area Internal Rate of fete Gopher Place Whalen Court The Barn Goldie's Square Stadium Remodel Investment (5000) $23,000 $119,300 $13,000 $23,900 $17,000 Net Present Value 10% Sales Decline Base Case Impact on NPV (5000) NPV (5000) $16,800 ($4,722) $25,900 ($16,611) $20,500 ($4,066) $300 ($4,073) $15,700 ($7.851) IRR 12.3% 9.8% 16.4% 8.1% 10.8% Population 70,000 632,000 151,000 222,000 N/A Population Increase 2000-2005 27% 3% 3% 16% N/A Median Income $56,400 $48,500 $38,200 $56,000 $65,931 % Adults 4+ yrs. college 12% 45% 17% 24% 42% Step by Step Solution
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