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Lukow Products is investigating the purchase of automated equipment that will save $120,000 each year...

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Lukow Products is investigating the purchase of automated equipment that will save $120,000 each year in direct labor and inventory carrying costs. This equipment costs $710,000 and is expected to have a 7 -year useful life with no salvage value. The company's required rate of return is 9% on all equipment purchases. Management expects this equipment to provide intangible benefits such as greater flexibility and higher-quality output that will increase future cash inflows. Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using table. Required: 1 What is the net present value of the plece of equipment before considering its intangibie benefits? Note: Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount. 2. What minimum dollar value per year must be provided by the equipment's intangible benefits to justify the $710,000 investment? Note: Do not round intermediate calcutations. Round your answer to the nearest whole dollar amount. Answer is complete but not entirely correct

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