Lukow Products is investigating the purchase of automated equipment that will save $130,000 each year in direct labor and inventory carrying costs. This equipment costs $720,000 and is expected to have a 5-year useful life with no salvage value. The companys required rate of return is 10% 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 14B-1 and Exhibit 14B-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 equipments intangible benefits to justify the $720,000 investment? Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.