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Suppose Thelma Ann's Sweets is considering investing in warehouse-management software that costs $550,000, has $75,000 residual value, and should lead to cost savings of $120.000

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Suppose Thelma Ann's Sweets is considering investing in warehouse-management software that costs $550,000, has $75,000 residual value, and should lead to cost savings of $120.000 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. $625,000 OB. $275,000 OC. $237,500 OD. $312,500

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