Lukow Products is investigating the purchase of a piece of automated equipment that will save $100,000 each year in direct labor and inventory carrying costs. This equipment costs $750,000 and is expected to have a 7 year useful life with no salvage value. The company's required rate of return is 7% on all equipment purchases Management anticipates that this equipment will provide Intangible benefits such as greater flexibility and higher quailty output that will result in additional future cash inflows. Click here to view Exhibit 148_1 and Exhibit 1482. to determine the appropriate discount factor(s) using table. Required: 1. What is the net present value of the plece of equipient 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 $750,000 investment? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 1 Not prosent value Minimin dollar va 2 EXHIBIT 12-1 Prebent Value of Stih 01 OT Periods 5% 93 9 12 153 200 27 1 0.962 0952 090 0935 0926 0907 090909010893 09850370 08620355 0547 08400333 0.026 0.820 00 0.005 0.800 2 0.925 0.90708900373 085 0842 0.826 0.812 0797 0783 07890756 073 0731 073 0706060681 0672 0.5610650 0640 3 0.899 0.864 0340 0.86 0.794 072 0751 0731 07120093 067508580641 062403090393 0.579 05640551 01537 0.524052 08550323 0.792 0763 07350700063 0659 00S 003 0592 0572 0552 0534 055 0.499 0432 0.667 0351 007 0423 010 5 0.822 07840147 070 0.61 0.850 0621 0.593 0567 053 059 0.097 0780456 037 099 0802 0.36 0.370 0.35503410320 5 0.7900746 0.705 0606 0600 0506 0.564 055 0507 0.450 0455 032 0410 0.390 0.370 0.52 0.335 0.19 0303 0.299 075 0262 7 07000 0.6650623 053 0547 050 042 0.452 0.425 0.000 0.376 0354 03330316 0295 0279 0263 024 025 02220280 3 0731 067 0.627 0.52 05400502 04670334 0.404 0.376 0351 0377 0305 0265 0.266 0229 022 021 0204 0191 019 09 07030545 05920.540500 0.250 00391 0361 033 03080294 0263 020 0225 02000010003670155 014 0134 10 0676 0014 05580508 0.4630422 0336 0352 0.1220295 020 0.20 0227 02080991 010 0126 0716 0902 06500555 0527 045 0429 038 035000207 0261 027 021501560178 0.5620 0050123 03 094 0.006 12 0.625 0557 0497 0400797 0.356 0310 0200 0.257 0231 0.208 017 0152 007 004012 09020032003300700003 08010530049 0.15 0.368 0326 02900258 0229 0.2040182 090 ONUS 00001600009000340075 000 000 0055 05770505 0.412 0.35803400299 0263 0232 0205 011 00 OM 0125 011 0099 00580070000000020055 000 000 15 0555040317023620315 0.2750229 0.209 018 0.100 OSO 0023 0100 0005 004 000065 0057 0.051001500100035 0.534 0.45803940379 0292 0252 02180 015 041 01230302 0092 0081007100120054 000 004200360020028 050 0405 0170317 270027101900170 OS 0125 0000093 0000 0000 0000 0052 005 0000005400300006 0022 04910403500206 0.750 021200 0153 010 0095 0010009 0059 005 004 003 002 002 0.034 00710010 0075 036 03 02770222 0194 0164 0195 0.098 0000 000 006000510033 COTT 001 0027 0021 000 000 005 20 0056 037 0312 0258 02150178 OS 014 01040087 0073 000051 000 003700 0026 0.002 001001001000 0.000350021 020 0199 0964 005012 000 007 0064 005 004 00370030026 000 000 000 000 000 000 0.4220342020226 0154 015 0000000056 00 00 003200200022 0.000000000000000007 0.0000220202 02110170 On OU 0000074 0000 0000 0000 0000 0022 0000000000000000000000 0100200200197 015 030200020066 00530000050028 0.0330090000000000000000000000 25 0.375 0295 02014 OS 0002 003 0.05 000038 0.0000026 0.02000000 0000 0000 000 000 000 000 0301020022002 US 0004 0000053 004200 002 0.021 000 000 001 0.0000 000 000 000 000 2 362080 207001 0025 0.006 00000000000370020002001100 01 000 000 000 000 000 000 000 025501015001 00000000054 000 001 0020 0200000000000000000000005 000000000000000 03102005 O 00006001500290022017 OM 001 000 000 000 0004 000000000000000 000075 005 004 00000000000000000000050004 000000000000000001 02010070670120022000 on 0000 0005 0.000 000 000 000 000 000 0000 0000 0000 0000 0000 19 00 DHT1452 Present of an Annuity of Stine 1559061 Periods 5 7 20 2 OSZ 0.952 050 0.93 0920 0.909090103902050700032 05 06 0.500 033 000 0005 0800 2 1936 155 190 1300 1783 1750 1736 170 1690 166 1667 1626160515851566 157 158 159 1692 TL 2.723 2673 2624 2572 2511 247 248 2407 2.361 222 223 224 2210 2114 2100 2000 2011 2012 2011 363 250 26 380 3.30 3240 300 3102 3037 2974294 2055 2790276320002001250 2.500 2051 2002 2001 2002 5 4500 393 3990 37 35963505 15173335232141327 3052991 2926 2564 28002745 26 5242 50269 4767 4623 4155 231 3.990 2009 3704 1685 1689 1498 3410 2.326 325 3967 300220202.951 7 5002 573 552 5309 5.200 5030 43084702 4564 423 42584950 4009 3922303706 760515081016 273 2623951 6720 6.63 620 59 570 5515 515 55454968 479946394482 4344207077954301726350 351 31 1729 9 YS 7100 6302 01515 5.995 5759 5537 5320 5132 49464772 607 44513034 4031 905 3706367) 3506463 7360 7024 670 613.65655.95650522652955019 405900 294992 4054 1923 1700157 11 200 306 707 7491 209 6.305 64956207 5900 565535234 5029403646564436 437 477 4005 1902 1703656 12 905 790 7536 6016492 6194 59 5600 56215997490 1991 1 409 427 47 395 1051173 9.900 394853507904 7:47 7800 675064N6522 542 558353425118 490015 454302 203 4050 1900 1056399999295 815 24 7706 736769026628 6.302 6.002 572458885229500843024611 02285 1962 164 10280970 76057191 6164626542 5.5475575 5724 5.092 1046752294315 2001 11652 32306 94173951 30 782473790746501 6205595456685055249334720536 437 400 40 18 11214 10.47 902 3544 30227549710067296373600750 5.0 5222 4990477545759 1265911000 102050972 8756 1201 77022250 6.50 6.7612855345273503344000 42001 120655 069604950 365 280923066903 6550 60555045.710507001544242030143 12500 12 12 11470 20 091 900 352963 7400 7035621 625 5929562051535301 19 40704057406042794 14029276460079792 8649775627802 630 597505535177 675444292 4511201211061 2019 772 10 7645 2170 670359 601 58505 4000 4300 2.970 20577 4250 220 67262996045723225867 41 57912300 11272 09.500 19 201 7280535634 6071574505152937470 152 12.550 1400 10529901 4123456 0072 750 7330 66,64 0975706 40759 15.622 1027311654906750823 7000 2372690064575650520045564720 4520 451 20 1510000929 130601 Soon 0257 1540 7074086935 CM 606 552 521 4 7 454 42254 11061 201607034741116534619253035224704745 0165002 7870655165.620 55105229974905141004 532020012022057407000566172 5551 52 453 Sot 70512476347056626337555250 O544330 EN 100 100