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5 3 Doints Lukow Products is investigating the purchase of a piece of automated equipment that will save $150.000 each year in direct labor and

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5 3 Doints Lukow Products is investigating the purchase of a piece of automated equipment that will save $150.000 each year in direct labor and inventory carrying costs. This equipment costs $800,000 and is expected to have a 5-year useful life with no salvage value. The company's required rate of return is 12% 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: 148-1 and Exhibit 14822. 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 minus sign. Round your final answer to the nearest whole dollar amount.) 2. What minimum dollar value per year must be provided by the equipments intangible benefits to justify the $800,000 investment? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount) 1 Net pronto Mimum

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