Why does Target use different hurdle rates for the store and the credit cards

The following questions regarding the case. Please answer every questions without leaving anything behind .
  1. Be prepared to describe and critique Target’s capital-budgeting system. Give specific consideration to the role of the real-estate managers and the makeup of the CEC.
  2. Which of the five CPRs should Doug Scovanner accept? Be prepared to explain how each of the considerations that follow influenced your decision:

a.NPV and IRR

b.Size of the project

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c.Cannibalization of other stores’ sales

d.Store sensitivities

e.Variance to prototype

f.Customer demographics

3 Why does Target use different hurdle rates for the store and the credit cards (9% and 4%, respectively)? What process would you use to estimate these discount rates to see if they are reasonable?

4 As a member of the CEC, would you continue to approve CPRs if it meant that Target would need to fund the requests with external funds, either debt or equity?

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