The Following Data Concerns a Proposed Equipment Purchase -
the Annual Average Investment Amount Used to Calculate the |

The following data concerns a proposed equipment purchase: $\begin{array} { | l | l | } \hline \text { Cost } & \$ 144,000 \\\hline \text { Salvage value } & \$ 4,000 \\\hline \text { Estimated useful life } & 4 \text { years } \\\hline \text { Annual net cash flows } & \$ 46,100 \\\hline \text { Depreciation method } & \text { Straight-line } \\\hline\end{array}$
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The annual average investment amount used to calculate the accounting rate of return is:

A) $48,950
B) $72,000
C) $70,000
D) $37,000
E) $74,000