A piece of equipment has just been purchased. It is expected to have a 5-year service life and to depreciate via the declining balance method. The present worth of its salvage value is $1 000. If the depreciation rate is 10%,and the MARR is also 10%, what was the purchase price of this equipment?

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The Answer of A piece of equipment has just been purchased. It is expected to have a 5-year service life and to depreciate via the declining balance method. The present worth of its salvage value is $1 000. If the depreciation rate is 10%,and the MARR is also 10%, what was the purchase price of this equipment?

A Piece of Equipment Has Just Been Purchased