This case puts student in the role of Target Corporation's CFO as he consider the advantages and disadvantage of a variety of capital investment proposals. The CFO is organizing his ideas prior to a meeting of the Capital Expenditure Committee (CEC) with other Target senior executives to consider the worthiness of ten capital-project requests (CPR), five of which were expected to require extra consideration.
Each CPR has a "dash" that summarizes the essential inputs used to compute the net present value (NPV) and internal rate of return (IRR) in addition to information about the kind of investment (new shop or remodel), market size, location, customer-demographic information, as well as the susceptibility of NPV and IRR to changes in various inputs. Students are tasked with evaluating the CPRs by balancing corporate-increase aims with the economics of the projects.
target corporation case study solution
PUBLICATION DATE: November 17, 2008 PRODUCT #: UV1057-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING