Tanner Corporation is considering the acquisition of a new machine that is expected to produce annual savings in cash operating costs of $$70,000$ before income taxes. The machine costs $$244,000,$ has a useful life of five years, and no salvage value. Tanner uses straight$-$line depreciation on all assets, is subject to a $30\%$ income tax rate, and has an after$-$tax hurdle rate of $8\%.$

FV of $$1$ at FV of an ordinary annuity at PV of $$1$ at PV of an ordinary annuity at Yr$.8\%8\%8\%8\%$

$11\mathrm{.}0801\mathrm{.}0000\mathrm{.}9260\mathrm{.}926$

$21\mathrm{.}1662\mathrm{.}0800\mathrm{.}8571\mathrm{.}783$

$31\mathrm{.}2603\mathrm{.}2460\mathrm{.}7942\mathrm{.}577$

$41\mathrm{.}3604\mathrm{.}5060\mathrm{.}7353\mathrm{.}312$

$51\mathrm{.}4695\mathrm{.}8670\mathrm{.}6813\mathrm{.}993$

$61\mathrm{.}5877\mathrm{.}3360\mathrm{.}6304\mathrm{.}623$

Required:

If the machine's accounting rate of return on the initial investment is $6\%.$

Compute the machine's net present value