4. Exercise 13-4 Uncertain Future Cash Flows [LO13-4) Onts Lukow Products is investigating the purchase of a piece of automated equipment that will save $100,000 each year in direct labor and Inventory carrying costs. This equipment costs $810,000 and is expected to have a 6-year useful life with no salvage value. The company's required rate of return is 7% on all equipment purchases. Management anticipates that this equipment will provide Intangible benefits such as greater flexibility and higher quality output that will result in additional future cash inflows, Click here to view Exhibit:130-1 and Exhibit 130 2 to determine the appropriate discount factors) using table Required: 1. What is the net present value of the piece of equipment before considering its intangible benefits? (Enter negative amount with a 2. What minimum dollar value per year must be provided by the equipment's intangible benefits to justly the $810,000 investment? (Do not round Intermediate calculations. Round your answer to the nearest whole dollar amount) Answer is not complete 1 2 Net present value Minimum dollar value $ 69.930 132.pg 1672.90461 X What is the form for Calci + etto-ct-media.meducation.com/Media/Connect Production/accounting/Garrison 16e exhibit_138 200 od EXHIBIT 13-2 Present Value of an Annuity of $1 in Arrears Perods 1 2 3 4 5 6 7 8 9 10 12 13 14 15 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0820 0.813 0.806 0.800 1.886 1.859 1.833 1808 1.783 1.759 1.736 1.713 1.690 1668 1647 1.626 1605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1457 1.440 2.775 2.723 2673 2.624 2577 2531 2487 2444 2.402 2.361 2322 2.283 2.246 2210 2.174 2140 2.106 2.074 2.042 2011 1981 1952 3.630 3.546 3.465 3.387 3312 3.240 3.170 3.102 3.037 2.974 2 914 2.855 2.799 2.743 2.690 2.639 2.589 2540 2494 2448 2.404 2362 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2926 2864 2.803 2745 2689 5.2425.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3,410 3.326 3.245 3.167 3.092 3.020 2.951 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 4.423 4288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3327 3.242 3.161 6.733 6.463 6.210 5971 5.747 5.535 5335 5.146 4.968 4.799 4639 4 487 4.344 4 207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3329 7.435 7.108 6.802 6.515 6.247 5995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 8.111 7722 7360 7.024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5019 4.833 4.659 4.494 4.339 4192 4.054 3.923 3.799 3.682 3.571 8.760 8306 7.887 7.499 7.139 6 805 6.495 6 207 5.938 5.687 5.453 5 234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3656 9.385 8.863 8.384 7943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4 439 4.278 4.127 3.985 3.851 3.725 9.9869.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 6.122 5 842 5583 5 342 5.118 4.910 4.715 4.533 4352 4.203 4.053 3 912 3.780 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6.628 6 302 6.002 5.724 5.468 5.229 5.000 4.802 4.611 4.432 4.265 4.108 3962 3824 11.118 10.380 9.712 9.108 8.559 8,061 7.606 7.191 6811 6.462 6.142 5847 5.575 5.324 5.092 4.876 4.675 4.489 4.315 4.153 4 001 3.859 11.652 10.838 10.106 9.447 8.851 8.313 7 824 7 379 6.974 6,604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4 357 4.189 4.033 3887 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4059 3.910 12 659 11.690 10.829 10.059 9.372 8.756 8 201 7.702 7.250 6.840 6.467 6.128 5,818 5,534 5.273 5.033 4812 4.608 4,419 4243 4080 3.928 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 7.366 6938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 4,442 4.263 4,097 3.942 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7.469 7.025 6,623 6.259 5.929 5.628 5.353 5.101 4.870 4657 4.460 4.279 4.110 3.954 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7.562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3963 14.451 13,163 12.042 11.061 10.201 9.442 8.772 8.176 7.645 7.170 6.743 6.359 6.011 5695 5.410 5.149 4.909 4.690 4.488 4,302 4.130 3970 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 7.718 7.230 6.792 6 399 6,044 5.723 5.432 5.167 4.925 4.703 4,499 4.311 4.137 3.976 15 247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7784 7.283 6.835 6.434 6073 5.746 5.451 5.182 4937 4.713 4.507 4318 4143 3.981 15.522 14.094 12.783 11,654 10.675 9.823 9,077 8.422 7.843 7.330 6.873 6.464 6.097 5.766 5.467 5.195 4.948 4.721 4.514 4.323 4.147 3.985 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4 956 4.728 4520 4.328 4.151 3.988 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 6 935 6514 6.136 5.798 5.492 5.215 4 964 4.734 4524 4332 4.154 3.990 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7984 7.441 6.961 6,534 6.152 5810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 80227.470 6983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4.159 3.994 17.292 15.372 13.765 12.409 11 258 10.274 9.427 8.694 8.055 7 496 7.003 6.566 6.177 5.829 5,517 5.235 4.979 4.746 4 534 4.339 4.160 3.995 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6.642 6 233 5.871 5.548 5.258 4.997 4.750 4.544 4.347 4.166 3.999 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 40