Lukow Products Is Investigating the purchase of automated equipment that will save $$140,000$ each year In direct labor and Inventory

carrying costs. This equlpment costs $$790,000$ and is expected to have a $7-$year useful life with no salvage value. The company's

requlred rate of return is $11\%$ 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 Exhiblt $14$B$-1$ and Exhiblt $14$B$-2,$ to determine the approprlate discount factor$($s$)$ using table.

Required:

What is the net present value of the plece 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 $$790,000$ investment?

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