AMD Construction Company

School479

 

1- Discuss the various in the capital equipment acquisition process.

 

 

 

2- Develop a comprehensive analysis of the negotiations between Jane Axle and Tom Reed

 

 

 

CAT-1 machine-purchase                                CAT-1 machine - Lease

          Current MachineLease Purchase 

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

Total

 

 

 

 

3- What is you assessment of the negotiations process, giving what you have studied? What are your recommendations for Mr. Reed? 

  • 10 years ago
  • 10
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