Beacon Company is considering automating its production facility. The initial investment in automation would be $6.24 million, and the equipment has a useful life of 5 yea 5 with a residual value of $1,090,000. The company will use straight-line depreciation. Beacon could expect a production increase of 45.000 units per year and a reduction of 20 percent in the labor cost per unit. Production and sales volume Current (no automation) Proposed (automation) 78,000 units 123,000 units Per Total Total Unit Unit $ 93 $ 93 Per $ 16 20 $ 16 ? 12 12 Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution margin Fixed manufacturing costs Net operating income $ 45 $ 49 $ 1,130,000 $ 2.350,000 PA11-2 Part 1 Required: 1-a. Complete the following table showing the totals. (Enter all answers in whole dollars.) Production and Sales Volume Current (no automation) $ 78,000 Units Per Unit Total $ 931 Proposed (automation) $ 123,000 Units Per Unit Total $ 93 $ $ 16 16 20 Sales Revenue Variable Costs: Direct Materials Direct Labor Variable Manufacturing Overhead Total Variable Manufacturing Costs Contribution Margin Fixed Manufacturing Costs Net Operating Income 12 48 45 $ $ 49 $ 1,130,000 2,350,000 1-b. Does Beacon Company favor automation? Yes No PA11-2 Part 2 2. Determine the project's accounting rate of return. (Ro Accounting Rate of Return 1 % PA11-2 Part 3 3. Determine the project's payback period. ( Payback Period years PA11-2 Part 4 4. Using a discount rate of 14 percent, calculate the net present value (NPV) of the proposed investment. factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Enter the Net Present Value