Required information PA11-2 (Algo) Making Automation Decision (LO 11-1, 11-2, 1-3, 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 unita Per Unit Total 599 $7 Current (no automation) 76,000 units Per Production and sales volume Unit Total Sales revenue $ 99 $ Variable costs Direct materials $ 12 Direct labor 30 Variable manufacturing overhead Total variable manufacturing 58 conta Contribution margin $41 Fixed manufacturing conta $ 1,120.000 Net operating Income $ 17 7 11 2 $ 47 $ 2,270,000 2 ces PA11-2 Part 5 5. Recalculate the NPV using a 8 percent discount rate. (Future Value of $1. Present Value of $1. Future Value Anguilty of $1. Present Yolue 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