Current Attempt in Progress A company is considering purchasing factory equipment that costs $400000 and is estimated to have no salvage value at the end of its 5-year useful life. If the equipment is purchased, annual revenues are expected to be $148000 and annual operating expenses exclusive of depreciation expense are expected to be $21000. The straight-line method of depreciation would be used. If the equipment is purchased, the annual rate of return expected on this equipment is 6.35% 23.50%. 31.75%. 37.00%