[The following information applies to the questions displayed below) Beacon Company is considering automating its production facility. The initial investment in automation would be $9.08 million, and the equipment has a useful life of 7 years with a residual value of $1,100,000. The company will use straight- line depreciation Beacon could expect a production increase of 38,000 units per year and a reduction of 20 percent in the labor cost per unit Current (no Proposed automation) (automation) 78,000 units 110,000 units Per Per Production and sales volume Unst Total Unit Total Sales revenue $93 $? Variable costs Direct materials 519 $.19 Direct labor Variable manufacturing overhead 11 Total variable manufacturing costs Contribution margin 5.43 Fixed snufacturing costs 5 1.180,000 2.200.000 Met operating income 2 20 11 50 2 $.42 4. Using a discount rate of 15 percent calculate the net present value (NPV) of the proposed investment (Eture Value of St. Present Valus. 1. Future Value Annuity of S1. Present Value Annuity of Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign, Enter the answer in whole dollars.) Beacon Company is considering automating its production facility. The initial investment in automation would be 59.08 million, and the equipment has a useful life of 7 years with a residual value of $1,100,000. The company will use straight line depreciation Beacon could expect a production increase of 38,000 units per year and a reduction of 20 percent in the labor cost per unit Current (no automation 178,000 units Per undt Total $93 SX Proposed (automation) 110,000 units Per Unit Total 593 5.10 Production and sales volume Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution sain ed manufacturing costs het operating Income 5.1 20 11 50 54 11 5:47 11.000 12200.00 5. Recalculate the NPV using a 10 percent discount rate Value 1. Vet. Vents Any 5.1) (Use appropriate factors) from the tables provided. Negative amount should be indicated by a minus sign Enter the answer in whole dollars) [The following information applies to the questions displayed below) Beacon Company is considering automating its production facility. The initial investment in automation would be $9.08 million, and the equipment has a useful life of 7 years with a residual value of $1,100,000. The company will use straight- line depreciation Beacon could expect a production increase of 38,000 units per year and a reduction of 20 percent in the labor cost per unit Current (no Proposed automation) (automation) 78,000 units 110,000 units Per Per Production and sales volume Unst Total Unit Total Sales revenue $93 $? Variable costs Direct materials 519 $.19 Direct labor Variable manufacturing overhead 11 Total variable manufacturing costs Contribution margin 5.43 Fixed snufacturing costs 5 1.180,000 2.200.000 Met operating income 2 20 11 50 2 $.42 4. Using a discount rate of 15 percent calculate the net present value (NPV) of the proposed investment (Eture Value of St. Present Valus. 1. Future Value Annuity of S1. Present Value Annuity of Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign, Enter the answer in whole dollars.) Beacon Company is considering automating its production facility. The initial investment in automation would be 59.08 million, and the equipment has a useful life of 7 years with a residual value of $1,100,000. The company will use straight line depreciation Beacon could expect a production increase of 38,000 units per year and a reduction of 20 percent in the labor cost per unit Current (no automation 178,000 units Per undt Total $93 SX Proposed (automation) 110,000 units Per Unit Total 593 5.10 Production and sales volume Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution sain ed manufacturing costs het operating Income 5.1 20 11 50 54 11 5:47 11.000 12200.00 5. Recalculate the NPV using a 10 percent discount rate Value 1. Vet. Vents Any 5.1) (Use appropriate factors) from the tables provided. Negative amount should be indicated by a minus sign Enter the answer in whole dollars)