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Required Informatlon

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Beacon Company is considering automating its production facility. The initial investment in automation would be $$8\mathrm{.}04$ million, and the equipment has a useful life of $7$ years with a residual value of $$1,040,000.$ The company will use straightline depreciation. Beacon could expect a production increase of $37\mathrm{.}000$ units per year and a reduction of $20$ percent in the labor cost per unit.

Required:

$1-$e$.$ Complete the following table showing the totals.

$1-$b$.$ Does Beacon Company favor automation?