Capital budgeting typically involves many years of forecasting. An excel spreadsheet containing years of cash flow projections and one or more discount rates can appear precise, scientific, and even rigorous but caveat emptor! Every cell is this spreadsheet includes many assumptions along with many preparatory calculations. For example, a traditional brick and mortar retailer would have a $30-40$ year forecast and a $12-15\%$ cash flow discount rate with a $5-10$ payback period. Additionally, for a new store, $1-2$ years of construction site planning and permitting can lead to $1-2$ years contruction and an additional $1-2$ years of store operations to even get to the point of comparing actual with forecasted performance. Consider also that this store example project is approved before this multi$-$year project gets to the point of knowing sales and profit performance.

$1.$ What ideas do you have to build in a cushion as many factors will change but the store would already be in construction or in the initial years of operation? How would you reduce this project risk before final approval of it$?$