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help pls!!! Beacon Company is considering automating its production facility. The initial investment in automation would be $8.55 million, and the equipment has a useful

help pls!!!
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Beacon Company is considering automating its production facility. The initial investment in automation would be $8.55 million, and the equipment has a useful life of 7 years with a residual value of $1,130,000. The company will use straight- line depreciation. Beacon could expect a production increase of 44,000 units per year and a reduction of 20 percent in the labor cost per unit Current (no Proposed automation) (automation) 77.000 units 121,000 units Per Per Production and sales volume Unit Total Unit Total Sales revenue $ 91 $ 2 591 $ 2 Variable costs Direct materials $19 $ 19 Direct labor 20 2 Variable manufacturing overhead 10 10 Total variable manufacturing 49 7 costs Contribution margin $ 42 2 546 Pixed manufacturing costs 5.1.130,000 52, 290,000 Net operating incottie 4. Using a discount rate of 13 percent, calculate the net present value (NPV) of the proposed investment (Future Value of $1. Present Value of S1. Future Value Anoulty of S1. 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 dollars.) Not present value Required Information [The following information applies to the questions displayed below.) Beacon Company is considering automating its production facility. The initial investment in automation would be $8.55 million and the equipment has a useful life of 7 years with a residual value of $1,130,000. The company will use straight- line depreciation. Beacon could expect a production increase of 44,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no Proposed automation) (automation) 77,000 units 121,000 units Per Production and sales volume Total Unit Total $ 91 $ $ 91 $ 2 Variable costs Direct materials $ 19 Direct labor 20 Variable manufacturing overhead 10 Total variable manufacturing 49 costo Contribution margin $ 42 Pixed manufacturing costs $ 1,130,000 $ 2,290,000 Net operating income 7 Per Unit Sales revenue $ 19 7 10 2 $ 46 5. Recalculate the NPV using a 8 percent 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 dollars.) Not present value

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