A company is planning to purchase a machine that will cost $32,400, have a six-year life, and be depreciated over a three-year period with no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine?

Sales		$132,000
Costs:
Manufacturing	$53,400
Depreciation on machine	5,400
Selling and administrative expenses	44,000	(102,800)
Income before taxes		$29,200
Income tax (30%)		(8,760)
Net income		$20,440