How would your projected financial performance change

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Reference no: EM132290081

Assignment

a. How would your projected financial performance change if sales fall 20% short of or are 20% higher than your base assumption? What does your analysis of these two scenarios imply for the proposed investment? Justify your response.

b. What do the net present value, internal rate of return, and payback values from your base scenario and the sales variation scenarios above imply for the proposed investment? Be sure to explain how the time value of money affects your calculations and analysis.

Nordstrom annual revenue for 2019 was $15.86B, a 2.47% increase from 2018.Nordstrom annual revenue for 2018 was $15.478B, a 4.89% increase from 2017.Nordstrom annual revenue for 2017 was $14.757B, a 2.22% increase from 2016.

Please draft 3 tables to to reflect the following:

1.The expansion into South Africa would cost approximately 20 million US dollars. It is possible to find scenario 1, (Table 1) for the projected financial performance changes if sales were to fall 20 percent short of initial assumptions.

Table 1: Potential 20% Decrease in sales

In this scenario, Nordstrom would experience a decrease of ________ in 2018, ________ 2019, and________ in 2020. That represents a total of ________ 3 years.

Table 2: 20% Increase in sales

In scenario 2, Nordstrom would experience the rise of _______2018, ________3,275 2019, and _______ 2020. Thus, there would be a totally opposite scenario leading to an increase in sales by a total of_________ over the course of three years.

Table 3

What do the net present value, internal rate of return, and payback values from your base scenario and the sales variation scenarios above imply for the proposed investment of 20 Million? Be sure to explain how the time value of money affects your calculations and analysis.( Draft Table)

Reference no: EM132290081

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