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Required information S5.3 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance
Required information S5.3 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance equipment. A robotics-based testing system with support equipment will ensure that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. First cost of equipment AOC per Year Salvage Value Pull System $-1,550,000 $-620,000 $90,000 Estimated Life 8 years Push System $-2,650,000 $-620,000 $50,000 8 years S5.3.b - Evaluating Alternatives by Annual Worth Analysis Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 11% per year. The salvage value for the push system is determined to be $ in $1000 units
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