[The following information applies to the questions displayed below.] Beacon Company is considering automating its production facility. The initial investment in automation would be $13.05 million, and the equipment has a useful life of 10 years with a residual value of $1,050,000. The company will use straight-line depreciation. Beacon could expect a production increase of 35,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) Proposed (automation) 115,000 units Production and sales volume 80,000 units Fer Unit $ 93 Fer Unit $ 93 Total Sales revenue Variable costs $ 18 25 8 51 $ 42 $ 18 Direct materials Direct labor Variable manufacturing overhead 8 Total variable manufacturing costs Contribution margin Fixed manufacturing costs $ 47 $ 2,160,000 $1,100,000 Net operating income Required: 1-a. Complete the following table showing the totals. (Enter all answers in whole dollars.) Current (no automation)Proposed (automation) $ 80,000 Units $115,000 Units Production and Sales Volume Total Total Per Unit Per Unit 93 93 Sales Revenue Variable Costs 18 18 Direct Materials Direct Labor 25 Variable Manufacturing Overhead Total Variable Manufacturing Costs Contribution Margin Fixed Manufacturing Costs Net Operating Income 51 47 42 $1,100,000 2,160,000 1-b. Does Beacon Company favor automation? O Yes O No 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Accounting Rate of Return 3. Determine the project's payback period. (Round your answer to 2 decimal places.) years Payback Perio 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, Future 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 dollar. Round the final answer to nearest whole dollars.) Net Present Value 5. Recalculate the NPV using a 8% discount rate. (Future Value of $1, Present Value of $1, Future 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 dollar. Round the final answer to nearest whole dollars.) proe l Nog iv ol Net Present Value