A company is planning to purchase a machine that will cost $36,000, 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		$150,000
Costs:
Manufacturing	$54,000
Depreciation on machine	6,000
Selling and administrative expenses	50,000	(110,000)
Income before taxes		$40,000
Income tax (30%)		(12,000)
Net income		$28,000