Flint Systems Is Considering Investing in Production-Management Software That Costs

Flint Systems is considering investing in production-management software that costs $640,000,has $67,000 residual value,and leads to cost savings of $1,850,000 per year over its five-year life.Calculate the average amount invested in the asset that should be used for calculating the accounting rate of return.

A) $707,000
B) $640,000
C) $353,500
D) $67,000