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 \\( \\$ 6.31 \\) million, and the equipment has a useful life of 5 years with a residual value of \\( \\$ 1,160,000 \\). The company will use straightline depreciation. Beacon could expect a production increase of 48,000 units per year and a reduction of 20 percent in the labor cost per unit. 4. Using a discount rate of 13 percent, calculate the net present value (NPV) of the proposed investment. 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.) 5. Recalculate the NPV using a 8 percent discount rate. (Future Value of \\( \\$ 1 \\), Present Value of \\( \\$ 1 \\), Future Value Annuity of \\( \\$ 1 \\), Present I (Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Enter the answer in whole dollars.) 2. Determine the project's accounting rate of return. (Round your answer to \\( \\mathbf{2} \\) decimal places.) 3. Determine the project's payback period. (Round your answer to \\( \\mathbf{2} \\) decimal places.) TABLE 11.2A Present Value of \\( \\$ 1 \\) Required: 1-a. Complete the following table showing the totals. (Enter your answers in whole dollars, not in millions.) 1-b. Does Beacon Company favor automation? Yes