A company is planning to purchase a machine that will cost $34,800 with a six-year life and 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?

1 company is planning to purchase a machine that will cost $34,800 with a sixyear life and no salvage value. The company expects to s he 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 $ 195,999 Costs: Manufacturing $51,299 Depreciation on machine 5,899 Selling and administrative expenses 45,999 (192,999) Income before taxes $ 3,999 Income tax (49%) {1,299} Net income $ 1,899