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Beacon Company is considering automating its production facility. The initial investment in automation would be $ 1 0 . 2 5 million, and the equipment

Beacon Company is considering automating its production facility. The initial investment in automation would be $10.25 million, and the equipment has a useful life of 8 years with a residual value of $1,130,000. The company will use straightline depreciation. Beacon could expect a production increase of 43,000 units per year and a reduction of 20 percent in the labor cost per unit.
\table[[Production and sales volume,\table[[Current (no automation)],[87,000 units]],\table[[Proposed (automation)],[130,000 units]]],[Per Unit,Total,Per Unit,Total],[Sales revenue,$96,$?,$96,$?
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