d Prob PA11-2 (Algo) Making Automation Decision (LO 11-1, 11-2, 11-3, 11-5) The following information applies to the questions displayed below! Beacon Company is considering automating its production facility. The initial investment in automation would be $12.36 million, and the equipment has a useful life of 10 years with a residual value of $1,160,000. 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 automation) 80,000 units Per Proposed (automation) 117,000 units Per Unit Total $ 90 Total Unit $ 90 $ 16 Production and sales volume Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution margin Fixed manufacturing costs Net operating income $ 2,320.000 PA11-2 Part 5 5. Recalculate the NPV using a 9 percent discount rate, tute V S . Preset Vake... Eture Value Annus . Present VALVANNVITS (Use appropriate factor(s) from the tables provided. Negative amoushould be indicated by a minus sign Enter the answer in whole dollars.) Net present value