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 $15 million, and the equipment has a useful life of 10 years with a residual value of $500,000. The company will use straight- line depreciation. Beacon could expect a production increase of 40,000 units per year and a reduction of 20 percent in the labor cost per unit Production and sales volume Current (no automation) 80,000 units Per Unit Total $ 90 ? Proposed (automation) 120,000 units Per Unit Total $ 90 2 Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution margin Fixed manufacturing costs Net operating income $ 18 25 10 53 $ 37 $ 18 ? 10 > $42 $1,250,000 2 $ 2,350,000 2 5. Recalculate the NPV using a 10% discount rate. (Euture Value of $1. Present Value of $1. Euture Value Annully of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Enter the answer in whole dollars.)