Beacon Company is considering automating its production facility. The initial investment in automation would be $9.10 million, and the equipment has a useful life of 7 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. Proposed (automation) 125,000 units Current (no automation) Production and sales volume 88,000 units Per Per Total Total Unlt Unit 98 $ 98 Sales revenue ? Variable costs $ 19 Direct materlals 19 Direct labor 30 ? 11 11 Variable manufacturing overhead Total variable manufacturing costs Contribution margin 60 ? $ 38 $ 44 7 7 $1,060,000 $2,280,000 Fixed manufacturing costs ? Net operating Income Required Information Required: 1-a. Complete the following table showing the totals. (Enter all answers in whole dollars.) Current (no automation) Proposed (automation) $ 88,000 Units $ 125,000 Units Production and Sales Volume Per Unit Total Per Unit Total Sales Revenue $ 98 98 Variable Costs Direct Materials 19 19 Direct Labor 30 11 11 Variable Manufacturing Overhead Total Variable Manufacturing Costs 60 Contribution Margin 38 44 Fixed Manufacturing Costs 1,060,000 2,280,000 Net Operating Income 1-b. Does Beacon Company favor automation? Yes O No Required Infor 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Accounting Rate of Return % Required Infor 3. Determine the project's payback period. (Round your answer to 2 decimal places.) Payback Period 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 dollar. Round the final answer to nearest whole dollars.) Net Present Value Required Information 5. Recalculate the NPV using a 10% discount rate. (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