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 Current (no Proposed automation) Production and sales volume (automation 80,000 units 120,000 units Per Total Total Unit Unit Sales revenue $.90 $.90 Variable costs Direct materials $18 $18 Direct labor 25 2 Variable manufacturing overhead 10 10 Total variable manufacturing costs 53 > contribution margin $37 $.42 xed manufacturing costs $ 1,250,000 $2,250,000 Net operating income Por 7 2 3. Determine the project's payback period. (Round your answer to 2 decimal places.) Payback Period years