A company is planning to purchase a machine that will cost $35,400 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?

Sales$106,000Costs:Manufacturing$51,300Depreciation on machine5,900Selling and administrative expenses46,000(103,200)Income before taxes$2,800Income tax (35%)(980)Net income$1,820