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 $155000 and annual operating expenses exclusive of depreciation expense are expected to be $28000. 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. 6.35% b. 23.50% c. 31.75% d. 38.75%