[The following information applies to the questions displayed below.,] Beacon Company is considering automating its production facility. The initial investment in automation would be $9.52 million, and the equipment has a useful life of 8 years with a residual value of $1,200,000. The company will use straight-line depreciation. Beacon could expect a production increase of 33,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) Proposed (automation) Production and sales volume 77,000 units 110,000 units Per Unit $ 97 Per Total Total $ 97 Sales revenue Variable costs $ 17 25 8 50 $ 47 Direct materials Direct labor Variable manufacturing overhead 8 Total variable manufacturing costs Contribution margin Fixed manufacturing costs 52 1,070,000 $ 2,290,000 Net operating income net pres 4. 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 (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.) Si, Present Value of st, Ff Net Present Value 5. Recalculate the NPV using a 9% 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.) Net Present Value