Lukow Products is investigating the purchase of a piece of automated equipment that will save $150,000 each year in direct labor and inventory carrying costs. This equipment costs $740,000 and is expected to have a 5- year useful life with no salvage value. The company's required rate of return is 12% 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 14B-1 and Exhibit 14B-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 < Prev 1 of 4 Next > myner-quality output thIAL WILL ICSUIL IT additional future cash inflows. Click here to view Exhibit 14B-1 and Exhibit 14B-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 $740,000 investment? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 1. Net present value 2. Minimum dollar value Prev 1 of 4 Next > EXHIBIT 148-1 Present Value of $t;; 1 '+' Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 0.925 0.907 0890 0873 0.857 0.842 0.826 0812 0.797 0783 0.769 0.756 0743 0731 0718 0706 0.694 0.683 0.672 0.661 0650 0640 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 0.855 0823 0792 0763 0735 0708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0.410 0.822 0784 0747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 0.790 0.746 0705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0303 0.289 0.275 0.262 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.731 0.677 0.627 0.582 0.540 0.502 0467 0434 0.404 0.376 0.351 0.327 0305 0.285 0.266 0.249 0.233 0.218 0.703 0.645 0.592 0544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0194 0180 0.167 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0227 0.208 0191 0176 0362 0149 0.137 8 9 10 2345672222222 12 13 14 15 0.577 0.505 0.442 0.388 0.340 0.555 0.481 0.417 0362 0315 16 17 18 19 20 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.513 0436 0.371 0.317 0270 0.231 0198 0170 0.494 0.416 0.350 0.296 0.250 0.212 0.153 0.475 0.396 0.331 0.277 0.232 0194 0.456 0377 0.312 0.258 0.215 0178 0.180 0164 0138 0.149 0.124 21 0112 0301 0.091 0.249 0.235 0.222 0.210 0204 0191 0179 0168 0155 0144 0134 0126 0116 0107 0.195 0.178 0162 0148 0135 0123 0.112 0.103 0.094 0.086 0137 0124 0.112 0102 0.092 0.083 0.076 0.069 0168 0152 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.625 0.557 0.497 0.444 0.397 0.356 0319 0.286 0.257 0.231 0.208 0187 0.601 0.530 0469 0415 0.368 0326 0.290 0258 0.229 0.204 0182) 0163 0145 0130 0116 0104 0.093 0.084 0.075 0.068 0.061 0.055 0.299 0.263 0.232 0.205 0181 0160 0141 0125 0 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 0.275 0.239 0209 0183 0.160 0140 0123 0.108 0.095 0.084 0074 0.065 0.057 0.051 0.045 0.040 0.035 0.163 0141 0123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 0145 0125 0108 0.093 0.080 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.026 0.023 0130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.019 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0017 0.014 0.104 0.087 0.073 0.061 0.051 0.043 0.007 0.031 0.026 0.022 0.019 0.016 0.014 0.012 0.439 0.359 0.294 0.242 0199 0164 0135 0.093 0.077 0.064 0.053 0.044 0.032 0.031 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.422 0342 0.278 0.226 0184 0.150 0123 0,083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.007 0.406 0.326 0.262 0.211 0170 0138 0112 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 0.390 0.310 0.247 0197 0158 0126 0.102 0.082 0.006 0.053 0.043 0.035 0.028 0.023 0.019 0.015 0.013 0.010 0.008 0.007 0.006 0.005 0.375 0.295 0.233 0184 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 0.106 0.004 0.066 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.008 0.076 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 28 0.333 0.255 0196 0150 0.090 0.069 0.054 0.042 0.033 0.026 0.020 0.016 0.012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 29 0.321 0.243 0185 0141 0.082 0.063 0.048 0.037 0.029 0.022 0.017 0.014 0.011 0.000 0.006 0.005 0.004 0.003 0.002 0.002 0.002 30 0.308 0.231 0174 0131 0.099 0.075 0.057 0.044 0.033 0.028 0.020 0.015 0.012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0146 0.116 20 0.361 0.281 0.220 0172 0.347 0.268 0.207 0161 0135 0125 0110 0107 40 0.208 0142 0.097 0.067 0.046 0.032 0.022 0.015 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 EXHIBIT 148-2 Present Value of an Annuity of $1 in Arrears; [1] Periods 4% 5% 6% 1 0.962 0.952 0.943 2 1886 1.859 1.833 7% 8% 0.935 0.926 1.808 1783 9% 0.917 1.759 3 2.775 2.723 2.673 2.624 2.577 2.531 4 3630 3546 3465 3.387 3.312 3.240 5 4.452 4.329 4.212 4.500 3.993 3.890 6 5.242 5.076 4.917 4767 4.623 7 6.002 5.786 5.582 5.389 5.206 4.406 5.033 8 6.733 6.463 6.210 9 7.435 7:108 6.802 10 8311 11 8.760 8306 7722 7.360 7887 12 9.385 8.863 8.384 13 9.986 9.394 8.853 14 10.563 9.899 9.295 15 11118 10.380 9.712 9.108 16 11652 10.830 10506 9.447 17 19 #22 5.971 5.747 5.535 6.515 6.247 5.995 7.024 6710 6.418 7499 7139 6.805 7943 7.536 7161 7904 7487 7.786 8.001 8.313 12.166 11.274 10.477 9.763 9122 8.544 18 12.659 11690 10.828 10.059 9.372 8.756 11134 12.005 11150 10.336 9.604 0.950 20 13.590 12.462 11.470 10.594 9.810 9.529 21 14.029 12.821 11764 10.836 10.017 9.292 22 14.451 13363 12.042 11.061 10.201 9.442 8.358 8.745 8.244 8.559 8.051 23 24 25 14.857 13.409 12.303 11.272 15.247 13799 12.550 11.469 15.622 14.094 12.783 11.654 10.371 9.580 10.529 9.707 10.675 9.823 26 27 28 29 30 40 19.793 17159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7105 24% 25% 0.806 0.800 1.457 1440 22% 23% 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 1736 1713 1.690 1.668 1647 1.626 1.605 1585 1566 1547 1.528 1509 1492 1.474 2.487 2.444 2402 2.361 2.322 2.283 2.246 2210 21741 2140 2106 2.074 2042 2011 1.981 1952 3170 3102 3.037 2.974 2.914 2.855 2798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 4.355 4.231 411 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3367 3.092 3.020 2.951 4.868 4712 4564 4.423 4288 4160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3161 5.335 5146 4.968 4799 4639 4.487 4.344 4.207 4.078 3954 3.837 3.726 3619 3.518 3.421 3.329 5.759 5.537 5.328 5132 4.946 4772 4.607 4,451 4.303 4163 4.031 3.905 3.786 3673 3.566 3.463 6,145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3799 3.682 3.571 6495 6.207 5.938 5.687 5.453 5.234 5029 4.836 4.656 4.486 4.327 4177 4.035 3.902 3776 3656 6.84 6.492 6194 5.918 5.660 5.421 5197 4.988 4793 4.611 4.439 4.278 4127 3.985 3.851 3725 7103 6.750 6424 6.122 5.842 5.583 5.342 5.118 4.910 4715 4.533 4.362 4.203 4053 2.912 3780 7.367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.002 4.611 4.432 4.265 4.108 3.962 3.824 7.600 7191 6.811 6.462 6142 5.847 5.575 5.324 5.092 4876 4.675 4489 4.315 4153 4001 3.859 7824 7379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4730 4.536 4.357 4.109 4.033 3.887 8.022 7549 7120 6.729 6.373 6047 5749 5.475 5.222 4.990 4.775, 4.576 4.391 4.219 4059 3.910 8.201 7702 7250 6.840 6.467 6128 5818 5534 5.273 5.033 4.812 4.608 4.419 4.243 4.000 3.928 8.365 7839 7306 6.938 6.550 6190 5.877 5.584 5.316 5.070 4.843 4.635 4.442 4.263 4.097 3.942 854 7963 7469 7025 6623 6.259 5.929 5620 5.353 5101 4870 4.657 4.460 4279 4.110 3.954 0.649 8.075 7.562 7102 6.687 6.312 5.973 5.065 5.384 5.127 8.7728.176 7645 7170 6.743 6.359 6.on 5.696 5.410 5349 8.803 8.266 771 7230 6792 6.399 6044 5723 5.432 5.167 8.985 8.348 7784 7.283 6.835 6434 6073 5.746 5.451 5182 4.937 4713 4.507 4.318 4.143 3.981 9.077 8:422 7.843 7.330 6.873 6.464 6.097 5766 5.467 5.195 4.948 4721 4.514 4.323 4147 3.905 15.983 14.375 13.003 11.026 10.810 9.929 0161 8.488 7896 7.372 6.906 6491 6110 5.783 5.480 5206 4.956 4728 4.520 4.328 4.151 1.988 16.330 14 643 13.211 11987 10.935 10.027 9.237 8.548 7943 2409 6.935 6.514 6136 5.798 5.492 5.215 4.964 4734 4524 4.332 4154 3.990 16.663 14.898 13:406 12:137 11.051 10.116 9.307 8.602 7984 7441 6.961 6.534 6152 5.810 5.502 5.223 4.970 4739 4.528 4.335 4157 3.992 16.904 15.141 13.591 12.278 11150 10198 9.370 8.650 8.022 7470 6.983 6.551 6166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4159 3.994 17.292 15.372 13.765 12.409 11.258 10.274 9427 8.694 8.055 7496 7.003 6.566 6177 5.829 5.517 5.235 4.979 4746 4.534 4.339 4160 3.995 3.999 6.642 6.233 5.871 5.548 5.258 4.997 4760 4544 4.347 4166 10% 11% 12% 13% 14% 15% 16% 17% 19% 19% 20% 21% 4.091 4.675 4476 4.292 4121 3.963 4.909 4.690 4.488 4.302 4130 3.970 4.925 4703 4.499 4.311 4137 3.976