Discuss the various steps in the capital equipment acquisition process.

AMD Construction and Negotiation

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

  1. Discuss the various steps in the capital equipment acquisition process.
  2. Develop a comprehensive analysis of the negotiations between Jane Axle and Tom Reed. (Provide a chart to show financial impacts.)
  3. 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      

 

find the cost of your paper

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