MC Qu. 101 The following data concerns... The following data concerns a proposed equipment purchase: Cost Salvage value Estimated useful life Annual net cash flows Depreciation method $144,000 $ 4,000 4 years $ 46,100 Straight-line The annual average investment amount used to calculate the accounting rate of return is: Multiple Choice $74,000 $70000 $70,000 $74,000 $70,000 $72,000 $37,000 $48,950