The Briggs and Stratton Commercial Division designs and manufacturers small engines forgolf turf maintenance equipment. A robotics-based testing system with support equipmentwill ensure that their new signature guarantee program entitled "Always Insta-Start"doesindeed work for every engine produced.

Pull System Push System

First cost of equipment $-1,350,000 $-2,450,000

AOC per Year $-740,000 $-540,000

Salvage Value $115,000 $110,000

Estimated Life 8 years 8 years

Determine the salvagevalue for the push system that will make the company indifferent to the twosystems. Also,MARR = 15% per year.

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