Read the AMD Construction case study and answer the following questions in a 2-4 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:
CAT-1 machine – Lease
Operating cost (without operators)
Depreciation (straight line) 4 months
Lease Expense 4 Months
Interest expense at 8% for 4 months
Salvage Value after 3 years