The following information applies to the questions displayed below. Beacon Company is considering automating its production facility. The initial investment in automation would be $6.29 million, and the equipment has a useful life of 5 years with a residual value of $1,140,000. The company will use straight-line depreclation. Beacon could expect a production increase of 42,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) Proposed (automation) Production and sales volume 76,000 units 118,000 units Per Unit S 92 Per Unit $ 92 Total Total Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead $ 19 20 10 49 S 43 10 Total variable manufacturing costs Contribution margin Fixed manufacturing costs $ 47 $1,070,000 $ 2,150,000 Net operating income value: 2.00 points Required information Required 1-a. Complete the following table showing the totals. (Enter all answers in whole dollars.) value: 2.00 points Required 1-a. Complete the following table showing the totals. (Enter all answers in whole dollars.) Current (no automation) Proposed (automation) $118,000 Units Per Unit Production and Sales Volume $ 76,000 Units Per Unit $ 92 $ 6,992,000 Total Total 92 9210,856,000 Sales Revenue Variable Costs Direct Materials 19 16 10 45 Direct Labor 20 Variable Manufacturing Overhead Total Variable Manufacturing Costs Contribution Margin Fixed Manufacturing Costs Net Operating Income 49 433,268,00075,546,000 2,150,000 $ 3,396,000 1,070,000 $2,198,000 1-b. Does Beacon Company favor automation? No Yes 3. 2.00 points value: 2. Determine the project's accounting rate of retum. (Round your answer to 2 decimal places.) Accounting Rate of Return value: 2.00 points 3. Determine the project's payback period. (Round your answer to 2 decimal places.) years Payback Period 5.2.00 points Required information 4. Using a discount rate of 15 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 Val Annuity of S1.) (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 6 value: Required information 2.00 points 5. Recalculate the NPV using a 10% discount rate. (Future Value o $1. Present alue o 1. Future Value Annuity o $1. Present a ueAnnuity o $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