A company is planning to purchase a machine that will cost $54,000, have a six-year life, and be depreciated using the straight-line method 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.

Sales		$120,000
Costs:
Manufacturing	$59,500
Depreciation on machine	9,000
Selling and administrative expenses	37,500	(106,000)
Income before taxes		$ 14,000
Income tax (50%)		( 7,000)
Net income		$ 7,000

What is the accounting rate of return for this machine?

	A.12.96%
	B.4%
	C.25.93%
	D.50.00%
	E.33.30%