Question 1 (25 marks) Analytical questions

Visit any retail website or go to Milyds, Foschini, Edgars, Woolworths, etc. or any other apparel merchandising techniques employed. Be sure to reference the concepts you have learned in your chapters. If a manager begins to question you because of your suspicious note taking, just explain that you are a student at NUST anf if they have questions, first show them your student card or they should contact me.

Describe your answers to the following questions:

How is the store layout, design and visual merchandising techniques used to attract customers? Make recommendations of your findings on the store appearance. (10 marks)
Discuss the recent developments in retailing in Namibia. What are the major challenges facing organised retailers in Namibia? (10 marks)
Does the lighting highlight merchandise, structure space, capture a model, or downplay unwanted features? Comment on consistent fixture of the overall ambiance of the store? (5 marks

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?