requirea information 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 $10.36 million and the equipment has a useful life of 8 years with a residual value of $1,080,000. The company will use straight- line depreciation Beacon could expect a production Increase of 49,000 units per year and a reduction of 20 percent in the labor cost per unit Proposed (automation 125,000 units Per Unit Total $ Current (no automation) 76,000 unita Per Production and sales volume Unit Total Sales revenue 52 Variable costs Direct materials $ 17 Direct labor 30 Variable manufacturing overhead 11 Total variable manufacturing 50 costs Contribution margin S41 Fixed manufacturing conta 5.1,120,000 Net operating Income 2 5.17 7 11 7 $ 47 6 7 52/270,000 7 PA11-2 Part 4 4. Using a discount rate of 13 percent calculate the net present value (NPV) of the proposed Investment (Euture Value of $1. Present Value of $1. Exture Volie 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.) Net present value