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Larkspur Company is considering buying equipment for $ 3 6 0 0 0 0 with a useful life of 5 years and an estimated salvage

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Larkspur Company is considering buying equipment for $360000 with a useful life of 5 years and an estimated salvage value of $22000. If annual expected income is $28000, the denominator in computing the annual rate of return is
$180000.
$191000.
$382000
$360000.
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