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Beacon Company is considering automating its production facility. The initial investment in automation would be $$8\mathrm{.}23$ million, and the equipment has a useful life of $7$ years with a residual value of $$1,090,000.$ The company will use straight$-$line depreciation. Beacon could expect a production increase of $47,000$ units per year and a reduction of $20$ percent in the labor cost per unit.

$\backslash$table$[[$Production and sales volume,$\backslash$table$[[$Current $($no automation$)],[78,000$ units$]],\backslash$table$[[$Proposed $($automation$)],[125,000$ units$]]],[$Per Unit,Total,Per Unit,Total$],[$Sales revenue,$$93,$$$?,$$$93,$$$?],[$Variable costs$],[$Direct materials,$$16,,$$$16,1],[$Direct labor,$25,,?,],[$Variable manufacturing overhead,$10,,10,],[$Total variable manufacturing costs,$51,,?,],[$Contribution margin,$$42,?,$$$47,?],[$Fixed manufacturing costs,,$1,200,000,,2,270,000],[$Net operating income,,?,,?$]]$

$[$The following information applies to the questions displayed below.$]$

Beacon Company is considering automating its production facility. The initial investment in automation would be $$8\mathrm{.}23$ million, and the equipment has a useful life of $7$ years with a residual value of $$1,090,000.$ The company will use straight$-$line depreciation. Beacon could expect a production increase of $47,000$ units per year and a reduction of $20$ percent in the labor cost per unit.

$\backslash$table$[[$Production and sales volume,$\backslash$table$[[$Current $($no automation$)],[78,000$ units$]],\backslash$table$[[$Proposed $($automation$)],[125,000$ units$]]],[$Per Unit,Total,Per Unit,Total$],[$Sales revenue,$$93,$$$?,$$$93,$$$?],[$Variable costs$],[$Direct materials,$$16,,$$$16,|],[$Direct labor,$25,,?,],[$Variable manufacturing overhead,$10,,10,|],[$Total variable manufacturing costs,$51,,?,],[$Contribution margin,$$42,?,$$$47,?],[$Fixed manufacturing costs,,$1,200,000,,2,270,000],[$Net operating income,,?,,?$]]$

equired:

a$.$ Complete the following table showing the totals.

b$.$Determine the project's accounting rate of return.

c$.$Determine the project's payback period.

Note: Round your answer to $2$ decimal places.

d$.$Using a discount rate of $14$ percent, calculate the net present value $($NPV$)$ of the proposed investment. $($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value Annuity of $$1.)$

e$.$Recalculate the NPV using a $9$ percent discount rate. $($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value Annuity of $$1.)$