Rosenholm Corporation uses a discount rate of 18% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of 5 years has thus far yielded a net present value of $328,200. This analysis did not include any estimates of the intangible benefits of automating this process nor did it include any estimate of the salvage value of the equipment. (Ignore income taxes.) Ignoring any cash flows from intangible benefits, how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive? 2. Janes, Inc., is considering the purchase of a machine that would cost $680,000 and would last for 9 years, at the end of which, the machine would have a salvage value of $58,000. The machine would reduce labor and other costs by $118,000 per year. Additional working capital of $4,000 would be needed immediately, all of which would be recovered at the end of 9 years. The company requires a minimum pretax return of 11% on all investment projects. (Ignore income taxes.) What is net present value?