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Fin 321 Sylabus

Autor:   •  November 10, 2017  •  Course Note  •  378 Words (2 Pages)  •  440 Views

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For consideration of acceptance of CPR. There are few factors that considerably influence on the decision that we make.  These factors are from the impact of opening new stores in various areas. Which of these factors are based on; NPV and IRR, size of the project itself, competition against other stores, store sensitivities, variance to prototype, customer demographics, and brand awareness impact.

Exhibit 7 is included to perform the analyses.

Exhibit 7

 

 

Net Present Value* 

 

Trade Area**

 

Investment ($000)

Base Case NPV ($000)

10% Sales Decline ($000)

IRR

Population

Population Increase 2000-2005

Median Income

% Adults 4+ yrs. college

Gopher Place

$23,000

$16,800

($4,722)

12.30%

70,000

27%

$56,400

12%

Whalen Court

$119,300

$25,900

($16,611)

9.80%

632,000

3%

$48,500

45%

The Barn

$13,000

$20,500

($4,066)

16.40%

151,000

3%

$38,200

17%

Goldie’s Square

$23,900

$300

($4,073)

8.10%

222,000

16%

$56,000

24%

Stadium Remodel

$17,000

$15,700

($7,854)

10.80%

N/A

N/A

$65,931

42%

...

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