! Required information [The following information applies to the questions displayed below.] Beacon Company is considering automating its production facility. The initial investment in automation would be $10.71 million, and the equipment has a useful life of 9 years with a residual value of $1,170,000. The company will use straight- line depreciation. Beacon could expect a production increase of 46,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) 77,000 units Proposed (automation) 123,000 units Production and sales volume Per Unit Per Total Sales revenue $ 96 $ ? Unit $ 96 Total $ ? Variable costs Direct materials $ 19 $ 19 Direct labor 15 Variable manufacturing overhead 8 ? 8 Total variable manufacturing 42 ? costs Contribution margin $ 54 ? $ 57 ? Fixed manufacturing costs $ 1,080,000 $ 2,250,000 Net operating income ? ? 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.) (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