Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return

Woodard Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $800,000. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow:

Year	Cash Revenues	Cash Expenses
1	$1,600,000	$1,292,000
2	1,600,000	1,292,000
3	1,600,000	1,292,000
4	1,600,000	1,292,000
5	1,600,000	1,292,000

Required:

Compute the NC equipment's ARR. Enter as a percent and round your answer to one decimal place. Accounting rate of return = fill in the blank ___%