What would be the cash flow from salvage

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Reference no: EM131353133

Assume the following for a piece of equipment: 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) $7,000 and (b) $13,500?

Reference no: EM131353133

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