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Required Information [ The following information applies to the questions displayed below. ] Beacon Company is considering automating its production facility. The initial investment in

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[The following information applies to the questions displayed below.]
Beacon Company is considering automating its production facility. The initial investment in automation would be $8.04 million, and the equipment has a useful life of 7 years with a residual value of $1,040,000. The company will use straightline depreciation. Beacon could expect a production increase of 37,000 units per year and a reduction of 20 percent in the labor cost per unit.
\table[[,\table[[Current (no]],\table[[automation)83,000],[units]],\table[[Proposed (au]],\table[[tion)120,000]]],[Production and sales volume,Per Unit,Total,Per Unit,Total],[Sales revenue,$100,$ $,$100,$?
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