Beacon Company is considering automating its production facility. The initial Investment in automation would be $6.33 million, and the equipment has a useful life of 5 years with a residual value of $1,080,000. The company will use straight- line depreciation. Beacon could expect a production increase of 37,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) 76,000 units Der Unit Total $ 99 $ 7 Proposed (automation) 113,000 units Per Unit Total $ 99 $ 2 Production and sales volume Sales revenue Variable costa Direct material Direct labor Variable manufacturing overhead Total variable manufacturing conta Contribution margin Fixed manufacturing costs Net operating income $ 1B 30 10 SB $ 41 $ 18 2 10 2 2 $.47 $1,160,000 2 2 240.000 2 PA11-2 Part 2 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Accounting rate of return %