Project #162338 - AMD Construction and Negotiation

Business Tutors

Subject Business
Due By (Pacific Time) 01/09/2017 12:00 am

AMD Construction and Negotiation

Read Case 3: AMD Construction in the text (pg. 448-450) and answer the following questions in a three- to -four page, APA formatted paper:

a   Discuss the various steps in the capital equipment acquisition process.

b   Develop a comprehensive analysis of the negotiations between Jane Axle and Tom Reed. (Provide a chart to show financial impacts.)

c   What is your assessment of the negotiations process, given what you have studied?  What are your recommendations for Mr. Reed?  You must justify your conclusions.

Suggestion of format for analysis:

 

Current Machine

CAT-1 machine-purchase

CAT-1 machine - Lease

Operating cost (without operators)

 

 

 

Direct Labor

 

 

 

Depreciation (straight line) 4 months

 

 

 

Lease Expense 4 Months

 

 

 

Interest expense at 8% for 4 months

 

 

 

Salvage Value after 3 years

 

 

 

Unexpected Costs

 

 

 

Totals

 

 

 

 

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