Construction and Negotiation

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:

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