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

$1$ $$1,400,000$ $$1,100,000$

$21,400,0001,100,000$

$31,400,0001,100,000$

$41,400,0001,100,000$

$51,400,0001,100,000$

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 $1$ of $1\%$