Suppose Whole Foods is considering investing in warehouse-management software that costs $600,000,has $60,000 residual value and should lead to cash cost savings of $130,000 per year for its five-year life.In calculating the ARR,which of the following figures should be used as the equation's denominator?
A) $60,000
B) $600,000
C) $130,000
D) $275,000
Correct Answer:
Verified
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