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A company is considering purchasing factory equipment that costs $400000 and is estimated to have...

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Accounting

A company is considering purchasing factory equipment that costs $400000 and is estimated to have no salvage value at the end of its 5-year useful life.If the equipment is purchased, annual revenues are expected to be $149000, and annual operating expenses, exclusive of depreciation expenses, are expected to be $23000.The straight-line method of depreciation would be used. If the equipment is purchased, ,the annual rate of return expected on this equipment is: a.31.50 b. 6.3 c. 23.00 d. 37.25

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