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Lukow Products is investigating the purchase of a plece of automated equipment that will save $100,000 each year in direct labor and inventory carrying costs.

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Lukow Products is investigating the purchase of a plece of automated equipment that will save $100,000 each year in direct labor and inventory carrying costs. This equipment costs $890,000 and is expected to have a 6 -year useful life with no salvage value: The company's required rate of refurn is 9% on all equipment purchases. Management anticipates that this equipment will provide intangible benefits such as greater flexiblity and higher quality output that will resalt in additional future cash inflows Click here to view Exhibit 148-1 and Exhibit 148:2, 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 intang ble benefits? (Enter negative amount with a minus sign. Round your finol answer to the nearest whole dollor omount.) 2. What minimum dollar value per year must be provided by the equipment's intangible benefits to lustify the $890.000 investment? (Do not round intermediate calculations. Round your answer to the nearest whole dollor omount.) r11=(1+r)1

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