Discuss the various steps in the capital equipment acquisition process.

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:

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

Still stressed from student homework?

Get quality assistance from academic writers!

Order now