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Business, 18.12.2019 22:31 jellyangie1

Assume the following for a piece of equipment assuming straight-line depreciation: purchase price $20,000; installation costs of $2,500; 4-yr 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) $15,500 and (b) $7,000?

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