The Briggs and Stratton Commercial Division designs and manufactures small engines for golf turf maintenance equipment. A robotics-based testing system will ensure that their new signature guarantee program entitled “Always Insta-Start” does indeed work for every engine produced. Compare the two systems at MARR  10% per year. Solve using

(a) tabulated factors, and

(b) single-cell spreadsheet functions.

Pull System Push System Robot and support equipment first cost, $ 1,500,000 2,250,000 Annual M&O cost, $ per year 700,000 600,000 Rebuild cost in year 3, $ 0 500,000 Salvage value, $ 100,000 50,000 Estimated life, years 8 8