Exercise 14-4 (Algo) Uncertain Future Cash Flows (LO14.4) Lukow Products is investigating the purchase of a piece of automated equipment that will save $120,000 each year in direct labor and inventory carrying costs. This equipment costs $710,000 and is expected to have a 7-year useful life 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 flexibility and higher-quality output that will result in additional future cash inflows. Click here to view Exhibit 148.1 and Exhibh 148-2, to determine the appropriate discount factor(s) 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 equipment's intangible benefits to justify the 5710,000 investment? (Do not round Intermediate calculations. Round your answer to the nearest whole dollar amount.) D> 1 2 Not present value Minimum dollar value UNIT 14 Precent Voice of the Period 55 7 85 99 108 11 124 145 15 10 TE 199 201 223 259 1 0.902 0952 0943 0935 0926 0917 0909 0.901 0.893 0885 0877 0.870 0362 0855 087 08400833 0.826 0820080 0.305 0800 2 0.925 0.907 0.890 0.873 0857 0.842 0.826 0.812 0797 0783 0709 0.756 0743 0731 0.7180.06 0.691 0.683 0.672 0.00 0.650 0.640 3 0.889: 0864 0940 0.816 0.794 0772 0.751 0.731 0.712 0693 0675 0658 0.541 0624 0609 0.593 0579 0564 0551 0.537 0.524 0.50 4 0855 0823 0792 0763 0735 0709 0.683 0659 0.636 06130592 0572 0552 0534 0516 0.499 0.482 0.467 0.451 0.437 0.423 0410 5 0.822 0784 0.747 0713 0681 0.650 0.621 0.593 0567 0,543 0.519 0.497 0.476 0.456 0437 0.419 0402 0.356 03700355 0.341 0.378 6 0.70 0.746 0705 0.066 0630 056 0554 0535 0507 0.400 0456 0.412 0.410 0,390 0.370 0.352 0.335 0.313 0.303 0280 0.275 0.262 2 0760 0711 0605 0623 0583 0547 0513 0482 0.452 0425 0.400 0.375 0.354 0.333 0.31 0296 0279 0263 0249 0235 0222 0210 01 0671 0,627 0.582 0540 0.502 0.467 0434 0004 0376 0351 0322 0.305 0285 0266 0209 0.233 021 0.2040191 0.179 0168 9 0703 0645 0592 0544 0500 D 460 0.424 0391 0361 0333 0.308 0284 0263 0243 0225 0.2090194 0130 0167 0155 O 0034 50 0.676 0651 0558 0508 043 0422 0.396 0352 0.122 0295 0270 0247 0227 0208 0191 0.16 01620149 013700 0115 107 11 0650 0.585 0.527 0.475 0.429 0.38 0.35003170207 0201 0237 0.215 0195 0.78 0162 08013501230112 0103 0.094 0.016 12 0.025 0.557 046704160397 0.356 0719 0286 0.257 0221 0.200 0187 0168 0152 017 0124 012 01020002 0.003 0076 0009 0.001 03:30 0459 0.4%, 0.3600320 0.290 0.250 0.229 0.2040182 0.963 0.145 0130 0:19 0.104 0.093 0004 0.025 0.068 00GT 0055 50 057 0505 0442 0.3890340 0.299 0268 0232 0.205 01510160 014 01250m 6.099 008 007 0009 0.002 0.055 0049 C004 15 05550451 0.4170362 0315 0275 0239 02000183 0:160 050 0123 058 0.095 000 0.00 0.0050057 0.051 000 0000 0035 10 0534 0.450 0.394 0339 0.292 0252 0.2100100014 01230107 0.093 0.001 0.071 0.062 0054 000 0042 0.035 0.032 0.028 17 on 0416 0.371 03170.220 02 01990170 0546 0325 000 000 000 0.00000600052 0045 0000 0034 0090 0.025 0.023 0.491 0.41 0.350 02900250 0.212 0.1900153 0.1300 0.095 0.081 0.000 0.0500051 004 0.038 0002 0028 0.024 0.021 001 19 0479 0306 0.33 0277 0212 0164 0164 0038 0.11 0.09 0.060 0070 0000 000 000 0097 0.031 0.027 0023 0.020 0.0172 001 20 0.456 037 0.32 0.250 0.25 0178 0949 0124 0304 0.067 0.02 0.001 0051 0.04 0.00 0.00 0.025 0.022 0.0190.09 0.01002 0.429 0.950 0.204 0242 0199 0164 US 0112 0093 0.077 0.064 0050 0.00 0.002 0.001 0020 0002 00180015000000000 0.422 0342 0273 0226 0154 0950 0123 0101 0013 0068 0056 004 0028 0.03 0.026 2022 000 000 000 001 0.00 0.007 0405 0.3200202 021 0.120 0001120091 0.074 0.000 0019 0000 0000 0027 0022 010 0.00 0.00 0.00 0.00 0.00 0.006 24 0.390 0.100247 0197 0158012601020012 0006 0053 0013 0035 0.021 0.025 0.019 000 000 0000 0000 0000 0000 0005 25 0.375 0295 023 0.184 0.16 0.110 0.002 0.014 0.059 0047 0038 000 0024 0020 001600130010 0.000 0.00 0.005 0.0050004 0.3610201022002 003508060064 0.066 0053 0042 000 0026 0.021 0.017 0010011 0000 0.00 0.000 000 0004 0.001 27 0347 026 0207 0161 0125 0.098 0076 0060 0047 0097 0.029 0023 0.05 004 0.01 0.009 0.007 0.000 0.00 0.00 0.00 0.002 28 0333 0.265 019501500116 0090 0.0690054 0012 0.030 0026 00200046 0012 000 0000 0.00 0.00 0.00 0.00 0.00 0.002 20 0.321 020 0:1850 0.007 0.00 0.00 0.00 0.00 0.029 0.022 0.01 0.0 0.0 0.000 000 000 000 000 0000 0000 0000 30 0.002 0174 011 0.099 007 0057 0044 003 0026 0.020 001 0002 0.00 0.00 0.00 0.004 0.00 0.00 0.00 0.00 0.00 40 0 200 0542 0.097 0.067 0.046 0032 0.0220015001 0.003 000 000 0000 0002 0.001 0.001 000 0000 0000 0000 0000 0000 DIT E Pratant Value of an Annuity of $1 in Amers: || | 25 9 - 0902 09-094 095 0926 097 1995 0901 093 15 0 080 0662 0 0217010 0 1226 320 0 0 000 1989 1 1979 , LED 135 1 E90 TO TREAT 1626 1600 155 156 57 1520.1500 12:14 1457 1440 12 2673 2624 25 2571 2 244 2402 2361 2372 22 2.2220 2 230 2176 2014 02 2014 1942 2630 FH5 34 ) 2012 240 310 11023372974 2911 1066 27 27 269) 2010 2500 250 219 24 240 220 12 2 100 30 3 360 3675 357 37 1952 174 399 427 38 29 2626 786 2800 5 263 50 907 4707 1. | | 19 39 37 36 39 34 ) Tab 324 19:3020 2921 6006 55 52 520 5.03] 86 47 44 442.2L PEO 199 1922 12 106 10 11:27 12: 10 th 5 ) 55835.5 40 49 69 14431 120P ON 1954. 1 320 366 15 14/30 THE Tri Fore 651524) 19553 50 512 46 477 a0 us) 100 16 10 163 36 3260 14 0 |||| 72. 107 10 149 550 56 5609 650 49 19 12 4054 29 37 32 350 | | ] 306 776 10 57567 6.07 39 58 545) 5.234 3000 4236 46 44 177 Y 6 2202 16 1656 TE This TE1 6, 640 51 EN AH 5964793 40 42 935) 2 9219 E3 22 190 74 ) TW01 6750 62 62 5R4,4963522 90 Tal 16 Y 2016 24 or 202 ado: 77 35 500 10: 1000 TRET 6H 62 1425BH355 51 52 76 7 49 % % CCI 1999 175 ) 2006 9am) 3 74 730 1970 EP01 6268 SE- 56 5405 562 79 5 57 25 24TEA 54 DC 50 7170 6729 37. 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