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 $1171 million, and the equipment has a useful life of 9 years with a residual value of $1,000,000. The company will use straight- line depreciation. Beacon could expect a production increase of 50,000 units per year and a reduction of 20 percent in the labor cost per unit Current (no automation) 84,000 units Per Total $94 $? Proposed (automation) 134,000 units Per Unit Total $ 94 $2 Unit $ 17 Production and sales volume Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution margin Fixed manufacturing costs Net operating income $17 25 9 51 $ 43 mokes $ 48 7 $ 1,190,000 2 $ 2,350,000 7 Required: 1-a. Complete the following table showing the totals (Enter your answers in whole dollars, not in millions.) Current (no automation 34,000 units Per Unit Total $ 94 Proposed (automation) 134,000 units Por Unit Total $ 94 Production and Sales Volume Sales revenue Variable costs Miradariale 57 17 Required: 1-a. Complete the following table showing the totals. (Enter your answers in whole dollars, not in millions.) Current (no automation) 84,000 units Per Unit Total Proposed (automation) 134,000 units Per Unit Total $ 94 Production and Sales Volume Sales revenue $ 94 $ 17 $ 17 25 9 9 Variable costs Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution margin Fixed manufacturing costs Net operating income 51 $ 43 $ 48 $ 1,190,000 $ 2,350,000 1-b. Does Beacon Company favor automation? Yes No 4. Using a discount rate of 13 percent, calculate the net present value (NPV) of the proposed investment (Future Value of $1. Present Value of $1. Euture 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.) Net present value 5. Recalculate the NPV using a 8 percent discount rate. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of 51) (Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Enter the answer in whole dollars.) Nel present value