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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

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.

Pull System Push System
First cost of equipment $-1,650,000 $-2,350,000
AOC per Year $-760,000 $-640,000
Salvage Value $120,000 $100,000
Estimated Life 8 years

8 years

Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 10% per year.

The salvage value for the push system is determined to be $ ______ in $1000 units.

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