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Beacon Company is considering automating its production facility. The initial investment in automation would be $ 1 5 million, and the equipment has a useful

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 straightline 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.
\table[[Production and sales volume,\table[[Current (no automation)],[80,000 units]],{
\table[[Proposed (automation)],[120,000 units]]}],[,],[Sales revenue,$90,$?,$90,$?
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