Question: Based on historic data, we can break the prospects for the Store in Store concept into 4 scenarios. These can be described as follows: Probability
Based on historic data, we can break the prospects for the Store in Store concept into 4 scenarios. These can be described as follows:
|
| Probability | Customers per year (K) | Customer bill per visit ($) | Other VC as percentage of Sales |
| Exceptional | 15% | 105 | 17.00 | 47.0% |
| Average | 55% | 105 | 15.00 | 46.0% |
| Slow | 20% | 90 | 11.00 | 45.0% |
| Poor | 10% | 85 | 10.00 | 45.0% |
|
| 100% |
|
|
|
All other inputs are the same as the original assumptions (for example, depreciation is $100K per year for the Store in Store concept in each scenario).
What is the standard deviation of NPV of the Store in Store concept?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
