Q1) a) ! Required information The Briggs and Stratton Commercial Division designs and manufacturers small...
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Q1) a) ! Required information 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. First cost of equipment AOC per Year Salvage Value Estimated Life Pull System $-1,400,000 $-680,000 $115.000 8 years Push System $-2,500,000 $-640,000 $70,000 8 years Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 11% per year. The salvage value for the push system is determined to be $[ in $1000 units. b) Use factors and a spreadsheet to determine the interest rate per period from the following equation: 0 = -26,000 + 8,000 (P/A,2*,5) + 8,000 (P/F,4*,8) The interest rate per period is %
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