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) B0,000 units Per Total Unit $.90 ? Proposed (automation) 120,000 units Per Unit Total $.90 ? 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 53 537 $18 ? 10 ? $.42 ? $1,250,000 2 $ 2,350,000 4. Using a discount rate of 15 percent, calculate the net present value (NPV) of the proposed Investment. (Euture 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.)