Develop a comprehensive quantitative analysis of the negotiations between Jane Axle and Tom Reed.
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.
joyce
0
