A company is planning to purchase a machine that will cost $25,200, will have a six-year life, and will have 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		$ 110,000
Costs:
Manufacturing	$ 51,700
Depreciation on machine	4,200
Selling and administrative expenses	50,000	(105,900)
Income		$ 4,100

• 4.20%.

• 11.39%.

• 50.00%.

• 33.33%.

• 32.54%.