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Tawney Company is considering investing in a new piece of equipment that costs $700,000 and has a $200,000 residual value. The new equipment should provide

Tawney Company is considering investing in a new piece of equipment that costs $700,000 and has a $200,000 residual value. The new equipment should provide a cost savings of $60,000 per year over its five-year life. In calculating ARR, what is the average amount invested in the asset (denominator)

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