Assume the following for a piece of equipment assuming straightline depreciation: Purchase price $20,000 installation costs of $2,500 4Yr useful life with an estimated salvage value of $4,500 tax rate 40% What would be the cash flow from salvage if the asset sold after 2 years for (a) $11,500 and (b) $7,000?

a) $15,300, $6,200

b) $7,800, $11,700

c) $11,700, $7,800

d) $10,500, $7,800