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Harvard Manufacturing Company is considering the following investment proposal: Initial investment: Depreciable assets (straight-line) $40,800 Working capital 3,400 Operations (per year for 4 years): Cash

Harvard Manufacturing Company is considering the following investment proposal:

Initial investment:
Depreciable assets (straight-line) $40,800
Working capital 3,400
Operations (per year for 4 years):
Cash receipts $30,000
Cash expenditures 17,000
Disinvestment:
Salvage value of equipment $3,400
Recovery of working capital 1,700

The investments accounting rate of return (rounded to two decimal points) on the original investment is:

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