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ENGR.ECONOMIC ANALYSIS
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The Briggs and Stratton Commercial Division cesigns and manufacturers small engines for golf turf maintenance
eçuipment. 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
ACC per Year
Salvage Value
Estimated Life
$-1,700,000
$-2,400,000
$-740,000
$125,000
8 years
$-660,000
$110,000
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.](https://content.bartleby.com/qna-images/question/0d504605-0c42-44d1-a5d8-dc069156c2cb/4b5d5bac-0cc3-46b3-8647-0164be81ba87/yifkdz_thumbnail.jpeg)
Transcribed Image Text:Required information
The Briggs and Stratton Commercial Division cesigns and manufacturers small engines for golf turf maintenance
eçuipment. 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
ACC per Year
Salvage Value
Estimated Life
$-1,700,000
$-2,400,000
$-740,000
$125,000
8 years
$-660,000
$110,000
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.
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