Answer 4 and 5 are wrong tooAnswer 4 and 5 are also wrong

Beacon Company is considering automating its production facility. The initial investment in automation would be $8.21 million, and the equipment has a useful life of 6 years with a residual value of $1,190,000. The company will use straight-line depreciation. Beacon could expect a production increase of 37,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no autom 74,000 units Total ation) Proposed (automation) Production and sales volume 111,000 units Per Unit 94 Per Unit S 94 Total Sales revenue Varlable costs Direct materlals Direct labor Variable manufacturing overhead $ 18 20 10 48 $ 46 $ 18 10 S 50 Total varlable manufacturing costs Contribution margin Fixed manufacturing costs $1,240,000 $2,150,000 Net operating Income Required information 2.00 points Required 1-a. Complete the following table showing the totals. (Enter all answers in whole dollars.) Current (no automation) $ 74,000 Units Per Unit $ 94|$6.956,000 IS Proposed (automation) $ 111,000 Units Per Unit Production and Sales Volume Total Total Sales Revenue 941 10 434.000 Variable Costs S 18 16 10 Direct Materials $ 18 20 10 48 63,404,000 S Direct Labor Variable Manufacturing Overhead Total Variable Manufacturing Costs Contribution Margin Fixed Manufacturing Costs Net Operating Income 50 5,550,000 2,150,000 S 3,400,000 1240,000 S 2,164,000 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Accounting Rate of Return 3. Determine the project's payback period. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Payback Period 6.00 x years 4. Using a discount rate of 14 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 dollar. Round the final answer to nearest whole dollars.) Net Present Value $ (2,861,279) References eBook&Resources Worksheet Learning Objective: 11-01 Calculate the Leaning Objective: 11-03 Calculate net present value and describe why it is accounting rate of return and describe superior to the other capital budgeting techniques. its major weaknesses Difficulty: 3 Hard Learning Objective: 11-02 Calculate the Learning Objective: 11-05 Use the net present value method to analyze payback period and describe its major mutually exclusive capital investments weaknesses. Check my work value 2.00 points Required information ** kili : NI Yushi , a7 des 8:4 lit k: (Future la ue o EL Present alue o 1. Future alt e nnuityo 1. Present vale nnur of $1 ) (use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Enter the answer in whole dollar. Round the final answer to nearest whole dollars.) Net Present Value 5 51,956,073)