37 ! Required information [The following information applies to the questions displayed below.] Beacon Company is considering automating its production facility. The initial investment in automation would be $15 million, and the equipment has a useful life of 10 years with a residual value of $500,000. The company will use straight- line depreciation. Beacon could expect a production increase of 40,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) Proposed (automation) 120,000 units Production and sales volume Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs. Contribution margin Fixed manufacturing costs. Net operating income 80,000 units Per Unit $ 90 Total $7 Per Unit Total $ 90 $ 7 $18 25 $18 7 10 10 53 7 $ 37 $ 42 1,250,000 ? 2,350,000 Required: 5. Recalculate the NPV using a 10 percent discount rate. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) Note: Lice annronriate factoris from the tables provided Enter the answer in whole dollars