Tucker Manufacturing is considering investing in specialized equipment costing $842,000. The equipment has a useful life of five years and a residual value of $77,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below: Year 1 Total 2 3 4 5 $317,000 355,000 365,000 197,000 230,000 $1,464,000 What is the average annual operating income from the asset? OA. $124,400 OB. $109,000 OC. $139,800 OD. $292,800

Tucker Manutacturing is considerng investing in specialized egupenent costing \$842.000. The equipment has a useful lof of five yeare and a residual value of 57 . oce. Depreciation is calculated using the straphy-lefe mefod The expected net cash inflows from the imestment are given below What is the averege annual coerathy income from the isset? A. $124.400 B. 5109,000 C. 5139.200 0. $202,800