What is the average accounting rate of return (ARR) on a piece of equipment that will cost $1.2 million and that will result in pretax cost savings of $380,000 for the first three years and then $280,000 for the following three years? Assume that the machinery will be depreciated to a salvage value of 0 over 6 years using the straight-line method and the company's average tax rate is 32 percent. If the acceptance decision is based on the project exceeding and ARR of 20 percent, should this machinery be purchased?