Question: Beacon Company is considering automating its production facility. The initial investment in automation would be $ 8 . 4 2 million, and the equipment has

Beacon Company is considering automating its production facility. The initial investment in automation would be $8.42 million, and the equipment has a useful life of 7 years with a residual value of $1,140,000. The company will use straightline depreciation. Beacon could expect a production increase of 32,000 units per year and a reduction of 20 percent in the labor cost per unit.
\table[[Production and sales volume,\table[[Current (no automation)72],[units]],\table[[Proposed (automation)104,000],[units]]],[Per Unit,Total,Per Unit,Total],[Sales revenue,$98,$?,$98,$?
 Beacon Company is considering automating its production facility. The initial investment

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