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Sister Tool Co is considering investing in specialized equipment costing 5610,000. The equipment has a useful life of five years and a residual value of

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Sister Tool Co is considering investing in specialized equipment costing 5610,000. The equipment has a useful life of five years and a residual value of $75,000 Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below Year 1 $220,000 2 150,000 3 168,000 4 97,000 5 134,000 Total $769.000 What is the average annual operating income from the asset? O A. $153,800 OB 531,800 OC. $16,800 OD. $46,800

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