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)|
|Depreciation (straight line) 4 months|
|Lease Expense 4 Months|
|Interest expense at 8% for 4 months|
|Salvage Value after 3 years|
Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.