dollar value per year

dollar value per year
Union Bay Plastics is investigating the purchase of automated equipment that would save $130,000 each year in direct labor and inventory carrying costs. This equipment costs $840,000 and is expected to have a 5-year useful life with no salvage value. The company’s required rate of return is 9% on all equipment purchases. This equipment would provide intangible benefits such as greater flexibility and higher-quality output that are difficult to estimate and yet are quite significant. (Ignore income taxes.) Use Exhibit 13B-2 to determine the appropriate discount factor(s) using table. Required: What dollar value per year would the intangible benefits have to have in order to make the equipment an acceptable investment? (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount. Omit the “$” sign in your response.) Annual value = $ ?