EXHIBIT 12B-1 Present Value of $1;(1+r)n1 EXHIBIT 12B-2 Present Value of an Annuity of S1 in Arrears; 1/r(1(1/(1+r)n)) Lukow Products is investigating the purchase of a piece of automated equipment that will save $160,000 each year in direct labor and inventory carrying costs. This equipment costs $870,000 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 and to determine the appropriate discount factor(s) using table. Requlred: 1. What is the net present value of the piece of equipment before considering its intangible benefits? (Enter negatlve omount with a minus sign. Round your flnol 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 Intermedlete colculatlons. Round your answer to the neorest whole dollar omount.)