business question assistance needed

Get perfect grades by consistently using our writing services. Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20

Order a Similar Paper Order a Different Paper

Macys in Chicago is planning to open a new store in River North
(close to downtown) in additon to its current stores in the nearby Loop
and Magnificent Mile. It wants to conduct an NPV analysis of whether to
open the new store. Explain how you would account for each of the
following items (include, exclude, modify) in a financial model for an
NPV analysis of the new store and why. No calculations are required.

a) The
new store will use computers that are currently being unused in the
Loop store. While they can be spared now, it is estimated that the Loop
store will have to invest $25K in new computers one year from now as a
consequence (instead of using these idle computers then).

b) The

project will use a warehouse currently owned by the firm. While the

warehouse is not currently being used, it can be rented out for

$1,000,000 a year. The book value of the warehouse is currently

$8,000,000 and it is being depreciated straight line (with 5 years

remaining for depreciation)

Got stuck with another paper? We can help! Use our paper writing service to score better grades and meet your deadlines.

Get 15% discount for your first order

Order a Similar Paper Order a Different Paper