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A company is evaluating three possible investments. Each uses the straight - line method of depreciation. The following information is provided by the company: Investment:

A company is evaluating three possible investments. Each uses the straight - line method of depreciation. The following information is provided by the company:

Investment: $212,000

Salvage Value: $30,000

Net Cash Flows

Year 1: $86,000

Year 2: $56,000

Year 3: $66,000

Year 4: $26,000

Year 5: $0

What is the accounting rate of return?

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