AMD Construction
Case 3 ;
Read Case 3: AMD Construction in the text (pg. 448-450) and answer the following questions in a 3-4 page paper, justifying your conclusions. ; Your paper should have at least two scholarly sources, in addition to the textbook, and be formatted according to APA style as outlined in the Ashford Writing Center. ;
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- 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? ;
;~Suggestion of format for analysis:
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Current Machine |
CAT-1 machine-purchase |
CAT-1 machine – Lease |
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Operating cost (without operators) |
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Direct Labor |
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Depreciation (straight line) 4 months |
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Lease Expense 4 Months |
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Interest expense at 8% for 4 months |
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Salvage Value after 3 years |
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Unexpected Costs |
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Totals |
