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Exercise $7-4($Algo$)$ Uncertain Future Cash Flows $[$LO$7-4]$

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Lukow Products is investigating the purchase of a piece of automated equipment that will save $$140,000$ each year in direct labor and points inventory carrying costs. This equipment costs $$730,000$ and is expected to have a $6-$year useful life with no salvage value. The company's required rate of return is $16\%$ on all equipment purchases. Management anticipates that this equipment will provide intangible benefits such as greater flexibility and higher$-$quality output that will result in additional future cash inflows.

Click here to view Exhibit $7$B$-1$ and Exhibit $7$B$-2,$ 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.

$2.$ What minimum dollar value per year must be provided by the equipment's intangible benefits to justify the $$730,000$ investment?

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

Answer is complete but not entirely correct.

$\backslash$table$[[1.$ Net present value,$$,(273,320)ox$