BUS612 Advanced Project Procurement Wk 5 Assignment

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AMD Construction

Read Case 3: AMD Construction in the text (pg. 448-450), and answer the following questions in a three- to four-page paper, excluding the title and reference pages, justifying your conclusions.  Your paper should be formatted according to APA style as outlined in the Ashford Writing Center.  

  • After reviewing Chapter 14, evaluate the negotiations between Tom Reed and Jane Axle.  What are your recommendations for Jane Axle as far as the next step in the negotiation process?  
  • Develop a comprehensive quantitative analysis of the negotiations between Jane Axle and Tom Reed. Provide a chart to show financial impacts (see suggestion of format for quantitative analysis of the negotiations below) 
  • Appraise the capital equipment acquisition decision and recommend if Reed should purchase or lease the CAT-1 if he chooses to go with Allen Manufacturing Company. 

Suggestion of format for quantitative analysis of the negotiations:

 

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

 

 

 

 

Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.

 

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