The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf maintenance...
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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 that their new signature guarantee program entitled "Always Insta-Start" does indeed work for every engine produced. Pull System First cost of equipment AOC per Year Salvage Value Estimated Life $-1,950,000 $-720,000 $95,000 8 years Push System $-2,750,000 $-420,000 $120,000 8 years Determine the salvage value for the push system that will make the company indifferent to the two systems. Also, MARR = 8% per year. The salvage value for the push system is determined to be $ in $1000 units
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