BUS 612 BUS612 Week 5 Assignment AMD Construction and Negotiation / Advanced Project Procurement

BUS 612 BUS612 Week 5 Assignment AMD Construction and Negotiation / Advanced Project Procurement

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BUS 612 BUS612 Week 5 Assignment AMD Construction and Negotiation / Advanced Project Procurement

AMD Construction and Negotiation. Due by Day 7. Read Case 3: AMD Construction in the text (pg. 448-450) and answer the following questions in a three- to -four page, APA formatted paper: 

1. a)  Discuss the various steps in the capital equipment acquisition process. 

2. b)  Develop a comprehensive analysis of the negotiations between Jane Axle and Tom Reed. (Provide a chart 

to show financial impacts.) 

c)  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