Making Sense of Capital Planning and Hurdle Metrics for New Store Investments
How to use capital planning frameworks to steer clear of bad store investments and minimize opportunity costs
The tl;dr
Stores are investments: they require capital and (ideally) become cash-generating assets
Financial Theory tells us that a company’s investments will inevitably succumb to the Law of Diminishing Returns
Capital Planning typically emphasizes three go / no go metrics: NPV, IRR, and Payback Period
Only focusing on one of these metrics, or failing to a…
Keep reading with a 7-day free trial
Subscribe to Clicks to Bricks: The Playbook to keep reading this post and get 7 days of free access to the full post archives.