A company is considering purchasing factory equipment that costs $500000 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 $153000 and annual operating expenses exclusive of depreciation expense are expected to be $22000. The straight-line method of depreciation would be used. If the equipment is purchased, the annual rate of return expected on this equipment is 30.60%. 26.20%. 5.24%.