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In agricultural tractors for example, as a general rule 40 to 50 percent of the value of the machine will be lost in the first quarter of the machine's life and by the halfway point of lifetime, from 70 to 75 percent of the value will be lost. The salvage value is often estimated as 10 to 20 percent of the initial purchase price.

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2. Purchase Price of Raw Materials. The purchase price of raw materials has a great influence on the price of equipment. If the purchase price of raw materials is high, then the overall price of the device will also rise, which lastly results to the high quotation in the market.

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