Question: Question content area top Part 1 A retailer is considering whether to invest in a warehouse routing system that costs $ 1 , 2 0

Question content area top
Part 1
A retailer is considering whether to invest in a warehouse routing system that costs $1,200,000, has a $100,000 residual value, and should lead to cost savings of $275,000 per year for its five-year life. In calculating the accounting rate of return(ARR), which of the following numbers should be used as the ARR equation's denominator?

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