AMD Construction

Business and Marketing [Your Name] [Institution`s Name] Capital Equipment Acquisition Process The capital acquisition is a long term investment decision that will support the business for a longer period than the other expenditure. So this acquisition decision has greater significance these are usually driven by the tax effect of the equipment to be acquired as soon as possible without any unnecessary delay. The process of capital equipment acquisition includes the following steps with functional steps and subsystems: * The process starts with the wish list of the particular department for which the acquisition is going to be performed. In this step the capital request is forwarded to the related persons to tell about the requirement of the department. * Then the request of that department for the acquisition is compared with the overall company goals to check the benefits for the long run. * Project plan is made by analyzing the extent of the acquisition that whether it is for replacement, expansion of new products or expansion of existing line of products. * Economic life, investment value and cash flow are determined for the equipment to be installed. * The certainty and uncertainty factors are considered in this step for the use of the equipment. * The project is selected by the management. * The selected project is then analyzed to make the financial planning. * In this level if the selected plan is not suitable for the company in any aspect then the company goals are again compared with the acquisition plan and otherwise initiation of the plan is done. * When the funds are allocated and approved then the implementation is done with the purchase of assets. * In the end the budget allocated is rechecked with the actual expenditure of acquisition. * The auditing process ...