Lukow Products is investigating the purchase of a piece of

automated equipment that will save $$110,000$ each year in direct

labor and inventory carrying costs. This equipment costs $$820,000$

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$-$quality

output that will result in additional future cash inflows.$$Click here to view$$Exhibit $13$B$-1$and$$Exhibit

$13$B$-2,$ 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$$s intangible benefits to justify the $$820,000$

investment?$($Do not round intermediate calculations.

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