Current Attempt in Progress * Your answer is incorrect. A company is considering purchasing factory equipment that costs $500000 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 $150000 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 25.80%. 30.00%. O 11.60%. 5.16%.