Write a 10 page essay on Performing Purchasing Agent Duties.

It operated in large scale with very flexible approaches to business decisions concerning the entrepreneurial skills where there is hierarchy but the ideas flows from the bottom-up and top-down. This paper therefore seeks to assess the role of the purchasing agents in the Waters Inc. company and develop a request for proposal for companies dealing in computer soft wares

To obtain the information on the project that the company is yet to get into, this gives the opportunity for the company to learn about the project and determine whether the client is a good match that can help the company to prepare their bids and draw up contracts (Cheng, Farooq & Johansen, 2011). The questions will also help to make the client to be aware of the basic requirements and find out whether they are capable of meeting them.

The company of the Waters Inc. has issued this request for proposal for an integrated document management software system that are set for implementation to meet the operational requirement of the of the various departments that may include building safety, finance and management services and even the administrations. The company request for Five Pentium two computers, each of the computer to be powered by 500 megahertz microprocessor that has a RAM of 32 MB and can be expanded up to the capacity of 500 MB of RAM and a hard drive of 8 gigabytes with 3.5 inch floppy disk drives.

The purpose of this request for proposal (REP) is to give information that is sufficient to allow the interested parties (offerors) to prepare and submit their detailed proposals to the Waters Inc. finance department that is the treasury for consideration. Office in charge of issuing the computer soft wares (treasury) has issued this REP on behalf of the Waters Inc. Company. The only person to be contacted on matters relating to the soft wares in the Waters Inc.

Nationwide Decorators Inc. (Nationwide) spent $50,000 in market research and has determined the home shopping market cannot be ignored. Customers are best served if interior decorators meeting their customers in their home surroundings and therefore must “bring the store home”. Nationwide wants to launch their home-based business in Kitchener-Waterloo, a community perfect in both size and demographics to test their latest project. The biggest capital expenditure will be the acquisition of 2 custom vans equipped to house the latest in decorating samples.

Nationwide knows you have completed several homework “lease versus buy” problems at school and although you are very tired of them, they have approached you about completing just one more problem. They would like your advice as to whether or not Nationwide should lease or buy the vans. You have gathered the following information:

Each new van will cost $55,000. The company expects the vans can be used for 5 years at which time they can be sold for $5,000 each. The bank will extend financing for the purchase at 10% interest. The applicable CCA rate is 15%

Alternatively, each van can be leased for 5 years from the Can-Am Leasing Company for the sum of $11,800 per year payable in advance. The leasing companies cost of capital is 11%.

Whether or not the vans are purchased or leased, Can-AM offers a separate maintenance contract that will cover both vans for a grand total of $2,000 per year, payable at the start of the year.

You have been advised the Nationwide’s tax rate is 30% and the cost of capital is 3% greater than the bank rate (i.e 13%)

Required: Calculate the Net Present Value of the leasing and advise the President whether the new vans should be lease or purchased.