Tablerock Corp. is interested in reviewing its method of evaluating capital expenditure proposals using the accounting rate of return method. A recent proposal involved a $100,000 investment in a machine that had an estimated useful life of five years and an estimated salvage value of $10,000. The machine was expected to increase net income (and cash flows) before depreciation expense by $28,000 per year. The criteria for approving a new investment are that it have a rate of return of 12% and a payback period of three years or less. Table 6-4 (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.)

Required:
	Calculate the accounting rate of return on this investment for the first year. Assume straight-line depreciation. (Round your answer to 2 decimal places.)