Lukow Products is investigating the purchase 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 expects this equipment to provide intangible benefits such as

greater flexibility and higher$-$quality output that will increase future cash inflows.

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using table.

Required:

What is the net present value of the piece of equipment before considering its intangible benefits?

Note: Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.

What minimum dollar value per year must be provided by the equipment's intangible benefits to justify the $$820,000$ investment?

Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.

Net present value

Minimum dollar value