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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

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 $-1,500,000 $-2,600,000
AOC per Year $-800,000 $-600,000
Salvage Value $85,000 $140,000
Estimated Life 8 years 8 years

Determine the salvagevalue for the push system that will make the company indifferent to the twosystems. Also,MARR = 10% per year.

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

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