! 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 Direct labor 15 Variable manufacturing overhead, 8 $ 19 ? 8 $ ? Total variable manufacturing 42 ? costs Contribution margin $ 54 ? $ 57 ? Fixed manufacturing costs $ 1,080,000 $ 2,250,000 Net operating income ? ? 3. Determine the project's payback period. (Round your answer to 2 decimal places.) Payback period years