06 May WHAT ARE YOUR RECOMMENDATIONS FOR JANE AXLE AS FAR AS THE NEXT STEP IN THE NEGOTIATION PROCESS?
Analysis of AMD Construction
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
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