Walden Industries is considering investing in

productionmanagement

software that costs

$600,000,

has

$67,000

residual value, and leads to cost savings of

$2,300,000

per year over its

fiveyear

life. Calculate the average amount invested in the asset that should be used for calculating the accounting rate of return.

Question content area bottom

Part 1

A.

$333,500

B.

$667,000

C.

$67,000

D. $600,000