Multiple Choice Question 113 A company is considering purchasing factory equipment which costs $500000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $229000 and annual operating expenses exclusive of depreciation expense are expected to be $90000. The straight-line method of depreciation would be used. If the equipment is purchased, the annual rate of return expected on this project is