Redbird Inc. is considering the purchase of a robot for use on the company's assembly line. Selected data relating to the robot are provided below:

Purchase price of the robot	$1,200,000
The annual savings in labor costs	?
The annual increase in power and maintenance costs	$37,500
Salvage value in 5 years	$70,000
Useful life	5 years

Engineering studies suggest that the use of the robot will result in a savings of 23,000 direct labor hours each year. The labor rate is $16 per hour. The Redbird has a 10% required rate of return.

1. If the company purchases the robot, what will the annual net saving in $ be? (Hint: Do not include the one-time purchase price/installation, or salvage value; no rounding is needed.)

2.What is the net present value of the proposed investment in the robot in $? (Do not round your intermediate calculations. Round your final answer to the nearest integer.)