Company profile:

Amazon Fresh Convenience Stores We can increase revenues/profit by selling $15 monthly Fresh Food subscription service, in addition to making a small margin on the groceries we sell. Bezos estimates achieving a 30% Gross Profit Margin after subtracting his cost of goods sold. While online grocery orders account for about 2% of total grocery sales in the United States, research indicates the online grocery market could more than double to over $42 billion this year. He forecasts Year 1 revenue per store at $300,000. The 2016 Earnings Before Depreciation and Taxes are forecast at 28% of Revenue each year. He projects that in Years 2 5 he can increase his EBDT by 10% a year by increasing customer count and adding more products. Amazons plan is to purchase 1,100 former Radio Shack stores for $110M and to spend $200,000 to remodel each store. The entire purchase price will be taken over 15 years MACRS.

Calculate the following for five years

Payback method Net Present Value method 5 year cash flow schedule Internal Rate of Return Modified Internal Rate of Return