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 $149000 and annual operating expenses exclusive of depreciation expense are expected to be $23000. The straight-line method of depreciation would be used. If the equipment is purchased, the annual rate of return expected on this equipment is 37.25%23.00%31.50%6.30%