2 pages/≈550 words
Business & Marketing
AMD Construction (Case Study Sample)
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-1machine - 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 References Benton, W.C. Jr. (2010), Purchasing and supply chain management (2nd edition), New York, NY: McGraw-Hill Irwin. source..
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 ce...
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