A company is planning to purchase a machine that will cost $$34,800,$ 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

Costs: $$

$$105,000$

Manufacturing

Depreciation on machine

$$51,200$

Selling and administrative expenses $45,000$

Income

$$3,000$

a$.50\mathrm{.}00\%$

b$.5\mathrm{.}80\%.$

c$.5\mathrm{.}17\%$

d$.33\mathrm{.}33\%$

e$.17\mathrm{.}24\%$