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Beacon Company is considering automating its production facility. The initial investment in automation would be $$10\mathrm{.}47$ million, and the equipment has a useful life of $8$ years with a residual value of $$1,190,000.$ The company will use straight$-$line depreciation. Beacon could expect a production increase of $44,000$ units per year and a reduction of $20$ percent in the labor cost per unit.

Production and sales volume Current $($no automation$)72,000$ units Proposed $($automation$)116,000$ units

Per Unit Total Per Unit Total

Sales revenue $ $95$ $ $?$question mark $ $95$ $ $?$question mark

Variable costs

Direct materials $ $19$ $ $19$

Direct labor $20?$question mark

Variable manufacturing overhead $1111$

Total variable manufacturing costs $50?$question mark

Contribution margin $ $45?$question mark $ $49?$question mark

Fixed manufacturing costs $1,230,0002,280,000$

Net operating income $?$question mark $?$question mark

Required:

$4.$ Using a discount rate of $14$ percent, calculate the net present value $($NPV$)$ of the proposed investment. $($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value Annuity of $$1.)$

Note: Use appropriate factor$($s$)$ from the tables provided. Negative amount should be indicated by a minus sign. Enter the answer in whole dollars.