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 $8.81 million, and the equipment has a useful life of 7 years with a residual value of $1,040,000. The company will use straight- line depreciation. Beacon could expect a production increase of 33,000 units per year and a reduction of 20 percent in the labor cost per unit Current (no Proposed automation) (automation) 76,000 units 109,000 units Per Production and sales volume Unit Total Unit Total Sales revenue $ 99 $ ? $ 99 $? Variable costs Direct materials $ 16 $ 16 Direct labor 20 Variable manufacturing overhead Total variable manufacturing costs ? Contribution margin $ 53 $57 Fixed manufacturing costs $ 1,200,000 $ 2,210,000 Net operating income 7 Per ? 10 10 46 7 3. Determine the project's payback period (Round your answer to 2 decimal places.) Payback period years