MC Qu. 90 A company is planning to purchase... 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? Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income before taxes Income tax (40%) Net income 105,000 $51,200 5,800 45, 000 (102,000) $ 3,000 (1,200) $ 1,800