Lukow Products is investigating the purchase of a piece of automated equipment that will save $$140,000$ each year in direct labor and

inventory carrying costs. This equipment costs $$930,000$ and is expected to have a $8-$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 $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using table. $($Use the tables to get

your discount factors. The linked tables are the same tables as the ones in your course packet. If you calculate discount factors

using Excel or a financial calculator, your answer may be different enough due to rounding that the system marks it wrong.$)$

Required:

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.$)$

What minimum dollar value per year must be provided by the equipment's intangible benefits to justify the $$930,000$ investment?

$($Hint: This is asking for the dollar value of intangible benefits that they would have to get each year to make the investment break

even in present value terms, i$.$e$.,$ the dollar value that would make the NPV zero.$)($Do not round intermediate calculations. Round

your answer to the nearest whole dollar amount.$)$

Net present value

Minimum dollar value