26. A company is considering purchasing factory equipment that costs $640,000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $180,000 and annual operating expenses exclusive of depreciation expense are expected to be $76,000. 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) 32.5%. B) 3.8%. C) 7.5%. D) 16.3%