Plagarism free A+ paper needed
· 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:
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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 |
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