Question: please show proper solution with formular or in table. thanks Lukow Products is investigating the purchase of a piece of automated equipment that will save

please show proper solution with formular or in table. thanks please show proper solution with formular or in table. thanks Lukow Products

Lukow Products is investigating the purchase of a piece of automated equipment that will save $400,000 each year in direct labor and inventory carrying costs. This equipment costs $2,500,000 and is expected to have a 15-year useful life with no salvage value. The company's required rate of return is 20% 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 4 Required: What dollar value per year would these intangible benefits have to have to make the equipment an acceptable investment

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