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A company is considering purchasing factory equipment that costs $400000 and is estimated to have no salvage value at the end of 5.year useful life. If the equipment is purchased, annual revenues are expected to be $160000 and annual operating expenses exclusive of depreciation expense are expected to be $24000. The straight-line method of depreciation would be used. If the equipment is purchased, the annual rate of return expected on this equipment is. 40.00% 6.80%. 28.00%. 34.00%