A company is planning to purchase a machine that will cost $30,600 with a six-year life and no salvage value. The company uses straight-line depreciation. 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 $ 98,000 Costs: Manufacturing $ 50,500 Depreciation on machine 5,100 Selling and administrative expenses 38,000 (93,600 ) Income before taxes $ 4,400 Income tax (30%) (1,320 ) Net income $ 3,080