TB MC Qu. 24-90 A company is planning to purchase a machine... A company is planning to purchase a machine that will cost $28,800 with a six-year life and no salvage value. The company uses straight-line depreciation. 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 $ 96,000 Costs: Manufacturing $ 50,300 Depreciation on machine 4,800 Selling and administrative expenses 36,000 (91,100 ) Income before taxes $ 4,900 Income tax (40%) (1,960 ) Net income $ 2,940 Multiple Choice 4.80%. 33.33%. 20.42%. 10.21%. 50.00%.