Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.
image text in transcribed
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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Victorian Literature And Finance

Authors: Francis O'Gorman

1st Edition

0199281920, 978-0199281923

More Books

Students also viewed these Finance questions