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All of my answers are correct, I just need help with number 5! Thank you The following information applies to the questions displayed below.] Beacon

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All of my answers are correct, I just need help with number 5! Thank you

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) Production and sales volume 80,000 units Total 120,000 units Per Unit $ 90 Per Unit $ 90 Total Sales revenue Variable costs $ 18 25 10 53 $ 37 $ 18 Direct materials Direct labor Variable manufacturing overhead 10 Total variable manufacturing costs Contribution margin Fixed manufacturing costs $ 42 $1,250,000 $2,350,000 Net operating income Required 1-a. Complete the following table showing the totals. (Enter all answers in whole dollars.) Current (no automation) 80,000 Units Proposed (automation) Production and Sales Volume 120,000 Units Total Per Unit Total Per Unit s90 7,200,000 90: 10,800,000 Sales Revenue Variable Costs $18 20 10 48 18 25 10 53 $ 372,960,0004 5,040,000 Direct Materials Direct Labor Variable Manufacturing Overhead Total Variable Manufacturing Costs Contribution Margin Fixed Manufacturing Costs Net Operating Income 1,250,000 $1,710,000 2,350,000 $2,690,000 1-b. Does Beacon Company favor automation? Yes 0 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Accounting Rate of Return 6.53: % 3. Determine the project's payback period. (Round your answer to 2 decimal places.) Payback Period 6.17 years 4. Using a discount rate of 15 percent, calculate the net present value (NPV) of the proposed investment. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Enter the answer in whole dollars.) Net Present Net Present Value $ (2,680,716) 5. Recalculate the NPV using a 10% discount rate. (Future Value of $1, Present Value of $1 Future Value Annuity of S1 Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Enter the answer in whole dollars.) Net Present Value Present Value of Annuity of $1 TABLE 11.4A 0.9259 1.7833 2.5771 3.3121 3.9927 0.9639 1.8929 2.7883 3.6514 4.4833 5.2851 6.0579 6.8028 7.5208 8.2128 13.8962 0.9709 0.9615 1.8861 2.7751 0.9592 1.8794 2.7620 0.9524 1.8594 2.7232 0.9346 1.8080 2.6243 3.3872 2.8839 3.8077 4.7135 5.6014 6.4720 7.3255 2.8286 2.6730 3.4651 4.5797 5.4172 6.2303 7.0197 7.7861 4.4207 5.1997 5.9470 4.3295 5.0757 5.7864 5.2421 6.0021 4.7665 5.3893 5.5824 6.2098 6.8017 5.9713 6.5152 7.3513 8.0109 13.2944 6.2469 6.7101 9.8181 7.1078 7.7217 12.4622 8.9826 16.3514 20 14.8775 13.5903 11.4699 10.5940 20% 0.8333 1.5278 2.1065 2.5887 Periods* 0.8696 1.6257 2.2832 2.8550 3.3522 3.7845 0.8772 1.6467 0.9174 0.9091 1.7355 2.4869 0.8550 1.6901 2.4018 3.0373 2.4437 3.1024 3.6959 4.2305 2.5313 3.2397 2.9745 2.9137 3.4331 3.8887 4.2883 4.6389 4 3.7908 4.3553 2.6893 2.9514 3.1611 3.9975 4.4226 4.7988 4.4859 5.0330 5.5348 5.9952 3.3255 5.1461 5.5370 4.9676 5.3282 5.6502 7.4694 4.4873 4.7716 5.0188 6.2593 3.8372 4.0310 4.1925 4.8696 5.3349 3.4631 3.5705 3.9539 5.2161 6.6231 5.4262 7.0248 8.5136 7.9633 20 9.1285 There is one payment each period Future Value of an Annuity of $1 TABLE 11.3A 375% 2.0700 3.2149 4.4399 5.7507 2.0200 2.0375 2.0425 3.1293 4.2623 5.4434 2.0800 3.2464 4.5061 5.8666 7.3359 8.9228 10.6366 12.4876 3.1525 4.2465 5.4163 6.6330 7.8983 9.2142 10.5828 12.0061 297781 4.3746 5.6371 6.9753 4.2307 5.3893 6.5914 7.8386 5.5256 6.8019 5.3091 6.3061 7.4343 8.5830 9.7546 10.9497 24.2974 9% 7.9585 9.2967 10.6918 12.1462 8.6540 10.2598 8.8923 9.5491 11.0266 12.5779 33.0660 9.8975 10.4750 11.8678 29.0174 13.1808 36.7856 13.8164 40.9955 45.7620 20 26.8704 2.1400 3.4396 2.1200 3.3744 4.7793 6.3528 2.1300 3.4069 2.2500 3.8125 5.7656 8.2070 3.2781 4.5731 5.9847 7.5233 3.4725 4.9934 6.7424 8.7537 3.3421 4.7097 6.2278 7.9129 9.7833 11.8594 4.6410 6.1051 7.7156 9.4872 11.4359 13.5975 15.9374 57.2750 .4416 9.9299 12.9159 16.4991 20.7989 25.9587 186.6880 6.6101 8.5355 10.7305 13.2328 16.0853 19.3373 91.0249 6.4803 8.3227 10.4047 12.7573 15.4157 18.4197 80.9468 15.0735 19.8419 25.8023 33.2529 342.9447 11.0285 13.0210 15.1929 51.1601 12.2997 14.7757 17.5487 72.0524 13.7266 16.7856 20.3037 102.4436 10 20 16.7220 64.2028 There is one payment each period Present Value of $1 TABLE 11.2A 3.75% 0.9592 0.9201 0.8826 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.9346 0.8734 0.9259 0.8573 0.7938 0.7350 0.9615 0.9246 0.8890 0.8548 0.8219 0.7903 0.9612 0.9423 0.8954 0.8631 0.8319 0.8018 0.7728 0.7449 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 0.8885 0.8626 0.8375 0.8131 0.7894 0.7664 0.7441 0.5537 0.7629 0.7130 4 0.9057 0.8880 0.8121 0.7790 0.7473 0.7168 0.6876 0.6595 0.6302 0.5835 0.5403 0.5002 0.4632 0.5820 0.5439 0.5083 0.2584 0.8535 0.7307 0.7026 0.6756 0.4564 0.6768 0.8203 0.6730 0.6920 0.6139 0.3769 20 Periods 9% 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 0.8850 0.7831 0.6931 0.6133 0.5428 0.8333 0.6944 0.5787 0.9091 0.8929 0.7972 0.7118 0.8772 0.7695 0.6750 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.7312 0.6587 0.5935 0.5120 0.4096 0.3277 0.2621 0.2097 0.1678 0.1342 0.1074 0.5194 0.4556 0.3996 0.4019 0.3349 0.5674 0.5645 0.5132 0.4665 0.4251 0.3762 0.3329 0.2946 0.4817 0.4523 0.4039 0.2326 0.1938 0.1615 0.0261 0.4224 0.1784 0.2697 0.0728 0.3855 0.2472 0.0611 20 0.1240 0.1037 5398 51487 0 879437 2334579 86 0630 28876 2527 1 2 5 789 113 2223 56 39 052568561 4 2 703 11539 7718 925 565 7 8277 0 01122 137 953 0 26161 11223 5792471 785 7 1235680358 975 7 31 64 1 7 8 4 5 3 2 4 5 12346791357 226 2 2412771 4 17 791 111-12 29 4 5 6 8 99 17 36 01234567890 01234567890

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