Beacon Company is considering automating its production facility. The initial investment in automation would be $$8\mathrm{.}22$ million, and the equipment has a useful life of $7$ years with a residual value of $$1,010,000.$ The company will use straightline depreciation. Beacon could expect a production increase of $30,000$ units per year and a reduction of $20$ percent in the labor cost per unit.

$\backslash$table$[[$Production and sales volume,$\backslash$table$[[$Current $($no automation$)72,000],[$units$]],\backslash$table$[[$Proposed $($automation$)102,000],[$units$]]],[$Per Unit,Total,Per Unit,Total$],[$Sales revenue,$$96,$$ $?,$$$96,$$ $?],[$Variable costs,,,,$],[$Direct materials,$$18,,$$$18,],[$Direct labor,$25,,?,],[$Variable manufacturing overhead,$8,,8,],[$Total variable manufacturing costs,$51,,?,],[$Contribution margin,$$45,?,$$$50,],[$Fixed manufacturing costs,,$1,150,000,,2,270,000$

$1.$what is the accounting rate of return?$\_\_\_\%$

$2.$Determine the projects payback method? $(2$ decimal places$)\_\_$ years

$3.$Using a discount rate of $13\%$ what is the net present value? $\_\_$

$4.$recalculate the NPV using a $8\%$ discount rate, what is the net present value now?$\_\_$