100% $ % .0 .00 123 - Default (Ari.. 10 Y BISA D. 8 53 31 F13 IfX B C D E F G H K M 10% Sales $ in Thousands Decline Population Impact on Incremental Incremental Increase % Adults 4+ New or Remode Investment Base Case NPV NPV IRR NPV/Investment Sales yr 1 Sales yr 5 Population 2000-2005 Median Income yrs college C 2 Gopher Place New 23000 16800 4722 12.3% 73% $22,800 $35, 100 70000 27% 56400 12% Whalen Court New 119300 25900 16611 9.8% 22% $79,600 $111,800 632000 3% 48500 45% 4 The Barn New 13000 20500 4066 16.4% 158% $24,000 $30,500 151000 3% 38200 17% 5 Goldie's Square New 23900 300 4073 8. 1% 1% $25,900 $42,000 222000 16% 56000 24% + Stadium Remodel Remodel 17000 15700 -7854 10.8% 92% $9,300 $9,300 N/A N/A 65931 42% 7 + 8 10 advertising expenses 2% of sales 11 12 13 BRAND vs NPV/Invesment brand is proportional to incremental sales NPV/Investment ranking ranking total 14 whalen Gopher 1 The barn goldies 2 The barn N - W 2 Stadium 15 Stadium 3 Gopher 16 Stadium 4 goldies 17 5 whalen 18 how to measure brand vs incremental sales 19 baseline for NPV - actual NPV = $ invested in brand 20 incremetal sales/population GD inaromatal coloranulation of mallard adilte Goldie's Square + + summary Gopher Place Whalen Court The Barn Stadium Remodel Brand VaTarget Case Assignment FIN 600 Capital Investment and Financing Decisions University of Kentucky The purpose of this document is to outline the proper format for writing up the Target case recommendation. The document should have a cover page with the case name, th_egro_up number, and a list of all group members participating in the assignment. Create a lename: (Target_Group x). Only one document should be submitted per team. The nal document should be uploaded through Canvas. The paper should be written in a professional manner (i.e., do not use non-standard abbreviations, personal anecdotes, or colloquial expressions). The purpose of professional writing is to convey information in a clear and succinct fashion. As such, while there is a maximum of two pages of text, there is no minimum page requirement and extraneous material should be omitted. While not directly scored, grammatical errors, misspellings or other shortcomings that inhibit clarity will detract from your score. You may also submit an Excel spreadsheet if you so desire to show any calculations that you made (but it is not required). The case score will be determined as follows: - Executive Summary (a short paragraph) - Outline the purpose of the case analysis - Overview of the company relevant to case - Project Analysis Rank the 5 projects best to worst and explicitly recommend approval or rejection of each project and justify your choice for each project (you may approve or reject all of the projects under consideration) List the advantages and disadvantages for each project, In terms of nancial, place emphasis on NPV, lRR, total outlay, and sensitivity analysis. - - . . . . 0 ' ographic analysis of each market and use your intuition as to how to weight these factors. Please be aware, that the most attractive markets tend to be the most expensive. (i.e., real life is messy)