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Suppose Suzy Cake's Sweets is considering investing in warehouse-management software that costs $450,000, has $55,000 residual value and should lead to cost savings of $130,000

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Suppose Suzy Cake's Sweets is considering investing in warehouse-management software that costs $450,000, has $55,000 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? O A $225.000 B. $197.500 OC $505.000 OD. $252 500

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