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 $6.33 million, and the equipment has a useful life of 5 years with a residual value of $1,080,000. 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) 76,000 units Per Unit Total $7 Proposed (automation) 113,000 units Per Unit Total $ 99 $ 2 $ 99 Production and salen volume Sales revenue Variable cost Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution margin Fixed manufacturing conta Net operating income $ 18 30 10 58 $141 $ 18 2 10 2 2 $ 47 $ 1.160,000 2 2 S2,340,000 2 PA11-2 Part 3 3. Determine the project's payback perlod. (Round your answer to 2 decimal places.) Payback period years