Question: Given Info: Standalone Store in a Store Initial Investment $ 2,400,000.00 $ 900,000.00 Life (years) 7.00 5.00 Customers per year $ 200,000.00 $ 100,000.00 Customer

Given Info:

Standalone Store in a Store
Initial Investment $ 2,400,000.00 $ 900,000.00
Life (years) 7.00 5.00
Customers per year $ 200,000.00 $ 100,000.00
Customer bill per visit $ 18.00 $ 14.00
Food and drink cost per customer $ 1.30 $ 1.30
Other VCR as percentage of Sales 65% 46%
Total Fixed Costs per year (Excluding D) $ 450,000.00 $ 350,000.00
Depreciation expense per year Straight Line Straight Line
Tax rate 18% 18%
CAPM Beta 1.3
Risk Free Rate 1.50%
Market Risk Premium 5.50%

1a. Calculate estimated NOPAT (i.e., net income if no debt) in excel

1b. Calculate after-tax operating cash flow for each store concept per year in excel

1c. What is the IRR of each store concept?

Please show everything in excel with formulas.

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