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 $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 5.75%. 17.50%. 28.75%. 36.25%