Suppose Franny Dip's Sweets is considering investing in warehouse-management software that costs $550,000, has $45,000 residual value, and should lead to cost savings of $130,000 per year for its five-year life. In calculating the ARR, which of the following figures should be used as the equation's denominator (average amount invested in the asset)? A. $275,000 B. $252,500 C. $297,500 D. $595,000 ic! w