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It is said that one of the weaknesses of the accounting rate of return is that it operates on income and not cash flows. Often,

  It is said that one of the weaknesses of the accounting rate of return is that it operates on income and not cash flows. Often, as a result, companies will use net present value analysis. If Company X is considering a $35,000 investment with expected cash flows of $6,200 annually over the next 7 years, find their net present value if annual return rate is 9% ? Should they invest.

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