Beacon Company is considering automating its production facility. The initial investment in automation would be $11.89 million, and the equipment has a useful life of 10 years with a residual value of $1,090,000. The company will use straight- line depreciation. Bescon 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 Proposed automation) (automation) 73,220 units 113, ee units Per Per Production and sales volume Unit Total Unit Total Sales revenue $ 98 $ 98 Variable costs Direct materials $ 19 $ 19 Direct labor 15 Variable manufacturing overhead Total variable manufacturing costs Contribution margin $ 56 Fixed manufacturing costs $1,218,ege $ 2,200,00 Net operating income 2 8 8 42 ? PA11-2 Part 2 2 Determine the project's sccounting rate of return. (Round your answer to 2 decimal places.) Accounting rate of return % 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 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 dollars.) Net present value 5. Recalculate the NPV using a 10 percent 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 dollars.) Net present value 3. Determine the project's payback period. (Round your answer to 2 decimal places.) Payback period years