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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 $11.45 million, and the equipment has a useful life of 9 years with a residual value of $1,100,000. The company will use straightline 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.
\table[[Production and sales volume,\table[[Current (no],[automation)],[87,000 units]],\table[[Proposed],[(automation)],[133,000 units]]],[\table[[Per],[Unit]],,Per,],[Sales revenue,\table[[Unit],[$92
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