Refer to the information about Dabaneh Corporation in Exercise E26-19. Assume the project has no residual value. Compute the ARR for the equipment.

Data From Exercise E26-19:

Dabbaneh Corporation is considering the purchase of a piece of equipment that costs $20,000. Managers estimate that this equipment will have a 4-year life and generate net cash inflows of $3,000 the first year, $8,000 the second year, $15,000 the third year and $9,000 the fourth year.