B Problem $16-142($Algo$)$ Tanner Corporation is considering the acquisition of$...$

nner Corporation is considering the acquisition of a new machine that is expected to produce annual savings in cash operating costs $$55,000$ before income taxes. The machine costs $$150,000,$ has a useful life of flve years, and no salvage value. Tanner uses faight$-$line depreciation on all assets, is subject to a $10\%$ income tax rate, and has an after$-$tax hurdle rate of $10\%.$

equired:

Compute the machine's accounting rate of return on the initial investrnent.

Compute the machine's net present value.

Note: For all requirements, do not round Intermedlate calculations. Round final answers to whole number.

A$.$ Rate of return

B$.$ Net present value