Seminar Questions for The Target Corporation Case, (BOOK: Case studies in Finance managing for corporate value creation, seventh edition - Bruner Eades Schill) 1. Be prepared to describe and critique Targets capital-budgeting system. Give specific consideration to the role of the real-estate managers and the makeup of the CEC. 2. Which of the five CPRs should Doug Scovanner accept? Be prepared to explain how each of the considerations that follow influenced your decision: a. NPV and IRR b. Size of the project c. Cannibalization of other stores sales d. Store sensitivities e. Variance to prototype f. Customer demographics g. Brand-awareness impact 3. Why does Target use different hurdle rates for the store and the credit cards (9% and 4%, respectively)? What process would you use to estimate these discount rates to see if they are reasonable? 4. As a member of the CEC, would you continue to approve CPRs if it meant that Target would need to fund the requests with external funds, either debt or equity?