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 $-1,900,000 $-2,600,000 AOC per Year $-660,000 $-680,000 Salvage Value $100,000 $50,000 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 = 15% per year. The salvage value for the push system is determined to be $ in $1000 units.
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