Exercise 12-4 Uncertain Future Cash Flows [LO12-4] Lukow Products is investigating the purchase of a plece of automated equipment that will save $160,000 each year in direct labor and inventory carying costs. This equipment costs $870,000 ond is expected to have a 7 -year useful iffe with no salvage value. The company's required rate of return is 9% on all equipment purchases. Management anticipates that this equipment will provide intangible benefits such as greater fexibility and higher-quality output that will result in additional future cash inflows. Click here to view Exhibit 128-1 and Exbibit 128-2, to determine the appropriate discount factor(s) using table. Required: 1. What is the net present volue 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 equipment's intangible benefits to justify the $870,000 investment? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount)