What the denominator in computing the annual rate of return

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Problem 1: Kingbird Company is considering buying equipment for $380000 with a useful life of 5 years and an estimated salvage value of $20000. If annual expected income is $28000, the denominator in computing the annual rate of return is

A. $380000.

B. $190000.

C. $200000.

D. $400000.

Reference no: EM132719318

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