5.) Recalculate the NPV using a 10% 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. Enter the answer in whole dollars.)

Net Present Value

Beacon Company is considering automating its production facility. The initial Investment in automation would be $15 million, and the equipment has a useful life of 10 years with a residual value of $500,000. The company will use straight-line depreciation. Beacon could expect a production Increase of 40,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) 88,880 units Production and sales volume per Proposed (automation) 120,eee units Per Total Unit $ 99 Unit Total $18 $ 18 Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution margin Fixed manufacturing costs Net operating income $ 37 $ 42 $ 1.250.889 ? $ 2.35e,289 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 Value Annulty of $1.) (Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Enter the answer in whole dollars.) Net Present Value