Exercise 14-4 (Algo) Uncertain Future Cash Flows [LO14-4] Lukow Products is investigating the purchase of a plece of automated equipment that will save $110,000 each year in direct labor and inventory carrylng costs. This equipment costs $820,000 and is expected to have a 7 -year useful life with no salvage value. The company's required rate of retum is 7% on all equipment purchases. Management anticipates that this equipment will provide intangible benefits such as greater flexiblity and higher-quality output that will result in additional future cash inflows. Click here to view 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 intangible benefits? (Enter negative omount with o 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 colculations. Round your onswer to the neorest whole dollar omount.)