AMD Construction in the text (pg. 448-450) from Benton, W. C. (2014). Purchasing and supply chain management (3nded.). Columbus, OH: McGraw-Hill, 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:
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Current Machine
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CAT-1 machine-purchase
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CAT-1 machine - Lease
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Operating cost (without operators)
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Direct Labor
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Depreciation (straight line) 4 months
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Lease Expense 4 Months
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Interest expense at 8% for 4 months
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Salvage Value after 3 years
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Unexpected Costs
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Totals
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