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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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