To determine the cash received from the sale of equipment, follow these steps:

1. Calculate the accumulated depreciation on the equipment sold:

   • Beginning balance of accumulated depreciation: €7,000,000
   • Add: Depreciation expense: €4,000,000
   • Subtract: Ending balance of accumulated depreciation: €8,000,000
   • Accumulated depreciation on the equipment sold: €7,000,000 + €4,000,000 - €8,000,000 = €3,000,000

2. Determine the book value of the equipment sold:

   • Historical cost of equipment sold: €5,000,000
   • Subtract: Accumulated depreciation on equipment sold: €3,000,000
   • Book value: €5,000,000 - €3,000,000 = €2,000,000

3. Compute the cash received from the sale:

   • Book value of the equipment sold: €2,000,000
   • Subtract: Loss on sale: €250,000
   • Cash received: €2,000,000 - €250,000 = €1,750,000

Option B is correct because the cash received is calculated as the book value minus the loss on sale, resulting in €1,750,000.