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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 | $-1,850,000 | $-2,650,000 |
AOC per Year | $-680,000 | $-660,000 |
Salvage Value | $85,000 | $100,000 |
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 = 14% per year.
The salvage value for the push system is determined to be $ ( )in $1000 units.
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