Exercise 14.4 (Algo) Uncertain Future Cash Flows [LO14-4] Lukow Products is irvestigating the purchase of automated equipment that will save $140,000 each year in direct labor and inventory carrying costs, This equipment costs $850,000 and is expected to have a 5 -year useful life with no salvage value. The company's required rate of retuin is 10% on all equipment purchases Management expects this equipment to provide intangible benefits such as greatef flexibility and higher-quality output that will increase future cash inflows. Click hote to view Exbit 148-1 and Exhibit 198-2. to determine the appropriate discount factor(s) using toble. Required: 1. What is the net presert value of the piece of equipment before considering its intangible 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 $850,000 investment? Not - Do not round intermediate calculations. Round your answer to the nearest whole doflar amount. RXHIBT 14B-1 ProustValurofS1:(1+r)111 r11(1+r)1