Target

CAPITAL PROJECT REQUEST

Capital Expenditure Committee: November 2006

FINANCIAL SUMMARY TOTAL R&P SALES Project B/(P) Proto 1st year 2005 Equivalent $64 000 $19 677 5th year 2005 Equivalent $64 000 $7 940 Sales maturity 1,00 -0,26 INCREMENTAL R&P SALES 1st year 2005 Equivalent 5th year 2005 Equivalent Sales maturity INVESTMENT Land Sitework Subtotal Building Other Total Net Investment VALUE Store Credit TOTAL Project B/(P) Proto $9 300 ($35 023) $9 300 ($46 760) 1,00 -0,26 Project B/(P) Proto $0 $5 000 1 173 2 097 $1 173 $7 097 12 411 2 245 3 271 -1 618 $16 855 $7 724

NPV & Investment

40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0

Status Quo Proposed New

Total New

Investment

NPV

-10% Sales

75 65 55

SALES

IRR NPV 12,5% $14 911 4,6% $828 10,8% $15 739 STORE SENSITIVITIES HURDLE ADJUSTMENT NPV IRR Sales Gross Margin Remodel Construction (Building & Sitework)

45 35 25 15 1 2 3

RISK/OPPORTUNITY 10% sales decline 1 pp GM decline 10% Const. cost increase Market margin, wage rate, etc. 10% sales increase

($7 854) ($6 457) ($910) ($11 317) $6 216

(1,8) (1,5) (0,3) (2,7) 1,5

P&L SUMMARY EBIT IMPACT Thru Open Yr 5th Yr Project B/(P) Proto ($6 103) ($4 812) $1 272 ($4 025)

Project: Market: Boardwalk Scope: Interior Remodel Prototype Before & After: SUP1.1 / S04 Expansion Availability: Not Site Constrained Offsite Whse/Dist Office: N/A

"Stadium Remodel"

Remodel Cycle: Last Remodel: Sides Before & After: POG Length: PROJECT DETAIL $1061 ($657 Bldg, $43 Roof, $361 Other) $332 ($62) SQUARE FOOTAGE Total Sales 153 019 (10 544) 142 475 136 616 5 859

V & Investment

Write Off RE Tax-Per Corp Tax B/(P) Proto

Total New Store

-10% Sales

Prototype

Original Sq Ft Additional Sq Ft Total Sq Ft After Remodel SUP04 Prototype B/(P) Prototype B/(P) Guide 1st FY

203 300 203 300 177 376 25 924

+10% Sales

SALES

Total Incremental Prototype

4

5

DEMOGRAPHICS MSA Trade Area 806 113 5,0% 16,0% $50 774 $65 931 158 29 28%...