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Beacon Company is considering automating its production facility. The initial investment in automation would be $$6\mathrm{.}46$ million, and the equipment has a useful life of $5$ years with a residual value of $$1,060,000.$ The company will use straight$-$line depreciation. Beacon could expect a production increase of $43,000$ units per year and a reduction of $20$ percent in the labor cost per unit.

Current $($no automation$)$ Proposed $($automation$)$

$76,000$ units $119,000$ units

Production and sales volume Per Unit Total Per Unit Total

Sales revenue $ $98$ $ $?$ $ $98$ $ $?$

Variable costs

Direct materials $ $18$ $ $18$

Direct labor $25?$

Variable manufacturing overhead $1111$

Total variable manufacturing costs $54?$

Contribution margin $ $44?$ $ $49?$

Fixed manufacturing costs $ $1,220,000$ $ $2,190,000$

Net operating income $??$

$2.$ Determine the project's accounting rate of return. $($Round your answer to $2$ decimal places.$)$