1 Tanner Corporation is considering the acquisition of a new machine that is expected to produce annual savings in cash operating costs of $77,000 before income taxes. The machine costs $230,000, has a useful life of five years, and no salvage value. Tanner uses straight-line depreciation on all assets, is subject to a 40% income tax rate, and has an after-tax hurdle rate of 10% Year FV of $1 at 10 FV of an ordinary PV of $1 at PV of an ordinary 2.5 1 1.100 annuity at 10% 1.000 10% annuity at 10% 0.909 0.909 2 nts awarded 1.210 2.100 0.826 1.736 3 1.331 3.310 0.751 2.487 4 1.464 4.641 0.683 Scored 3.170 5 1.611 6.105 0.621 3.7911 6 1.772 7.7161 0.564 4.355 Required: A. Compute the machine's accounting rate of return on the initial investment. B. Compute the machine's net present value. (For all requirements, Do not round intermediate calculations. Round final answers to whole number.) A Rate of return 5 B Net present value