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Tamarisk Company is considering buying equipment for $280000 with a useful life of 5 years and an estimated salvage value of $18000. If annual expected

Tamarisk Company is considering buying equipment for $280000 with a useful life of 5 years and an estimated salvage value of $18000. If annual expected income is $28000, the denominator in computing the annual rate of return is

$280000.

$149000.

$140000.

$298000.

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