Lukow Products is investigating the purchase of automated equipment that will save $$120,000$ each year In direct labor and Inventory carrying costs. This equipment costs $$910,000$ and is expected to have a $11-$ year useful life with no salvage value. The company's required rate of return is $10\%$ on all equipment purchases. Management expects this equipment to provide intanglble benefits such as greater flexibility and higher$-$quality output that will increase future cash inflows.

Click here to vlew 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 plece of equipment before considering its intangible benefits?

Note: Enter negatlve 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 $$910,000$ investment?

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

Net present value

Minimum dollar value