Project 5

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AMD Construction .nd Negoti.tion Re#d C#se 3: AMD Construction in the text (pg. 448-450) #nd #nswer the following questions in # three- to -four p#ge, APA form#tted p#per:

Discuss the v#rious steps in the c#pit#l equipment #cquisition process. Develop # comprehensive #n#lysis of the negoti#tions between J#ne Axle #nd Tom Reed. (Provide # ch#rt to show fin#nci#l imp#cts.) Wh#t is your #ssessment of the negoti#tions process, given wh#t you h#ve studied?  Wh#t #re your recommend#tions for Mr. Reed?  You must justify your conclusions.

Suggestion of form#t for #n#lysis: Current M#chine CAT-1 m#chine-

purch#se CAT-1 m#chine - Le#se

Oper#ting cost (without oper#tors) Direct L#bor Depreci#tion (str#ight line) 4 months Le#se Expense 4 Months Interest expense #t 8% for 4 months S#lv#ge V#lue #fter 3 ye#rs Unexpected Costs Tot#ls