28) Suppose Barnes & Noble Booksellers is considering investing in warehouse-management software that costs $500,000, has $50,000 residual value and should lead to cash cost savings of $120,000 per year for its five-year life. In calculating the ARR, which of the following figures should be used as the equation's denominator? A) $225,000 B) $500,000 C) $250,000 D) $275,000