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***Please show work. Thank you! Assume the following for a piece of equipment: Purchase price $20,000; installation costs of $2, 500; 4-year useful life with
***Please show work. Thank you!
Assume the following for a piece of equipment: Purchase price $20,000; installation costs of $2, 500; 4-year useful life with an estimated salvage value of $4, 500; tax rate 40%; and straight-line depreciation. What would be the cash flow from salvage if the asset sold after 2 years for (a) $8,000 and (b) $15,000? A. 8, 400; 12, 600 B. 14, 500; 7.500 C. 8,000; 15,000 D. 4.500; 7, 200Step by Step Solution
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