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

carrylng costs. This equipment 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 equlpment purchases. Management expects thls equipment to provide intanglble benefits such as

greater flexibility and higher$-$quality output that will Increase future cash Inflows.

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

Requlred:

What is the net present value of the plece of equipment before considering Its Intanglble benefits?

Note: Enter negatlve 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 equlpment's Intanglble benefits to Justlfy the $$790,000$ investment?

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

Net present value

Minimum dollar value