Question: required information the briggs and stratton commercial division designs and...
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.
Pull System Push System
First cost of equipment $-1,550,000 $-2,250,000
AOC per Year $-720,000 $-600,000
Salvage Value $110,000 $80,000
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 = 8% per year. The salvage value for the push system is determined to be $ in $1000 units.