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Suppose Whole Foods is considering investing in warehouse - management software that costs $600,000, has $30,000 residual value and should lead to cash cost

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Suppose Whole Foods is considering investing in warehouse - management software that costs $600,000, has $30,000 residual value and should lead to cash cost savings of $100,000 per year for its five-year life. In calculating the ARR, which of the following figures should be used as the equation's denominator? A. $100,000 B. $600,000 C. $30,000 OD. $130,000

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