Company wants to buy a numberically controlled machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $800,000. The numerically controlled equipment will last 5 years with no expected salvage value. The expected after-tax cash flows associated with the project:

Year Cash Revenues Cash Expenses
1 $1,300,000 $1,000,000
2 $1,300,000 $1,000,000
3 $1,300,000 $1,000,000
4 $1,300,000 $1,000,000
5 $1,300,000 $1,000,000

Compute the numerically controlled equipment’s accounting rate of return as a percent. The accounting rate of return equals the average income divided by the initial investment. I've tried everything and can seem to get the calculation correct.

Show the work you've done and someone can tell you what you're doing wrong. It's pretty much literally what they defined as accounting rate of return.