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Current Attempt in Progress A company is considering purchasing factory equipment that costs $400000...

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Accounting

Current Attempt in Progress
A company is considering purchasing factory equipment that costs $400000 and is estimated to have no salvage value at the end of 5-year useful life. If the equipment is purchased, annual revenues are expected to be $145000 and annual operating expenses exclusive of depreciation expense are expected to be $30000. The straight-line method of depreciation would be used. If the equipment is purchased, the annual rate of return expected on this equipment is
17.50%.
36.25%.
28.75%.
5.75%.
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