A company is planning to purchase a machine that will cost $36,000, have a six-year life, and be depreciated over a three-year period with no salvage value. 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 $150,000 Costs: Manufacturing $54,000 Depreciation on machine 6,000 Selling and administrative expenses 50,000 (110,000) ________________________________________ ________________________________________ Income before taxes $40,000 Income tax (30%) (12,000) ________________________________________ Net income $28,000 ________________________________________________________________________________ 77.78%. 50.00%. 6.00%. 155.56%. 33.33%.