Required 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 $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 Unit Total $ 90 Proposed (automation) 117,000 units Per Unit Total S 90 $ 16 Production and sales volume Sales revenue Variable costs Direct material Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution margin Fixed manufacturing costs Net operating income $ 1,160,000 $ 2,320,000 PA11-2 Part 2 2. Determine the project's accounting rate of return (Round your answer to 2 decimal places.) Accounting rate of return