Lukow Products is investigating the purchase of a plece of automated equipment that will save $400,000 each year in direct labor and Inventory carrying costs. This equipment costs $2,500,000 and is expected to have a 15-year useful life with no salvage value. The company's required rate of return is 20% 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 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using table. Required: 1. What is the net present value of the plece of equipment before considering its intangible benefits? (Enter negative amounts with a minus sign.) 2 What minimum dollar value per year must be provided by the equipment's Intangible benefits to justify the $2,500,000 Investment? (Do not round Intermediate calculations. Round your answers to the nearest whole dollar amount.) 1. Net present value Minimum dollar value 2 Prey 1 of 5 !!! Next > n a 00