Help Save & Exit S Assume that a company is considering purchasing a new piece of equipment for $240,000 that would have a useful life of 10 years and no salvage value. The new equipment would cost $20,000 per year to operate and it would replace an old piece of equipment that costs $60.000 per year to operate. The old equipment currently being used could be sold for a salvage value of $40,000. What is the amount of the initial investment associated with this proposal that should be used for calculating the simple rate of return? Multiple Choice $220.000 5200.000 5160000 O O $220,000 O $200,000. (0 O $180,000. $240,000