Question
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 | $-1,550,000 | $-2,250,000 |
AOC per Year | $-720,000 | $-600,000 |
Salvage Value | $110,000 | $80,000 |
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 = 8% per year.
The salvage value for the push system is determined to be $ in $1000 units.
F = 69,793 / 0.5403 = $129,174.53 [we can round it as $129,174] is not correct
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