Case Study

 

Store Sensitivities

Hurdle Adjustment

Reports the impact of variety of different scenarios

How much would sales need to change (decrease or increase) in order for projects IRR(NPV) to be equal to that of the prototype.

Full transfer impact: How much the sales need to be adjusted to fully reflect the  cannibalization of other stores. The sale graph in the middle   shows the total vs incremental sales. The difference is the sales  decrease of other stores.

Risk Opportunity

Quantifies the impact upon NPV and IRR for different scenarios. Ie How much will NPV and IRR change if sales decrease by 10%?

Variance to Prototype

Why NPV or IRR differs from the prototype. Define what items contribute to the change.

Demographics

Is the population growth high or low?

What is the income average?

Brand Awareness

The brand awareness is higher if the percentage of educated people is higher in the area.