Lukow Products is investigating the purchase of a piece of automated equipment that will save $130,000 each year in direct labor and inventory carrying costs. This equipment costs $720,000 and is expected to have a 5-year useful life with no salvage value. The company's required rate of return is 10% 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 128-1 and Exhibit 128-2 to determine the appropriate discount factors) using table Doc 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 $720.000 investment? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 1 2 Net present Value Minimum or value The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $61,000. The machine would replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $6,000 per year to operate The old machine currently in use could be sold now for a salvage value of $20,000 The new machine would have a useful life of 10 years with no salvage value, Book Required: 1 What is the annual depreciation expense associated with the new bottling machine? 2. What is the annual incremental net operating income provided by the new bottling machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? 4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place le. 0.123 should be considered as 12.3%) 1 2 3 4. Depreciation expense incremental net operating income Antal investment Simple rate of return Lukow Products is investigating the purchase of a piece of automated equipment that will save $130,000 each year in direct labor and inventory carrying costs. This equipment costs $720,000 and is expected to have a 5-year useful life with no salvage value. The company's required rate of return is 10% 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 128-1 and Exhibit 128-2 to determine the appropriate discount factors) using table Doc 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 $720.000 investment? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 1 2 Net present Value Minimum or value The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $61,000. The machine would replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $6,000 per year to operate The old machine currently in use could be sold now for a salvage value of $20,000 The new machine would have a useful life of 10 years with no salvage value, Book Required: 1 What is the annual depreciation expense associated with the new bottling machine? 2. What is the annual incremental net operating income provided by the new bottling machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? 4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place le. 0.123 should be considered as 12.3%) 1 2 3 4. Depreciation expense incremental net operating income Antal investment Simple rate of return