week 5

Dec 3rd, 2013
Anonymous
Category:
Accounting
Price: $15 USD

Question description

AMD Construction

Read the AMD Construction case study and answer the following questions in a 2-4 page, APA formatted paper. 


Discuss the various steps in the capital equipment acquisition process.

Develop a comprehensive analysis of the negotiations between Jane Axle and Tom Reed. (Provide a chart to show financial impacts.)

What is your assessment of the negotiations process, given what you have studied?  What are your recommendations for Mr. Reed? 

You must justify your conclusions.


        ~Suggestion of format for analysis: 

 

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

 

 

 


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