Beacon Company is considering automating its production facility. The initial investment in automation would be $9.18 million, and the equipment has a useful life of 7 years with a residual value of $1,130,000 The company will use straight-line depreciation. Beacon could expect a production increase of 42,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) 81,000 units Per Unit Total $ 93 $ ? Proposed (automation) 123,000 units Per Unit Total $ 93 $ ? $ 17 $ 17 ? 20 Production and sales volume Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution margin Fixed manufacturing costs Net operating income 11 11 48 $ 45 $ 49 ? $ 1,070,000 ? $ 2, 340,000 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Accounting rate of return 3. Determine the project's payback period. (Round your answer to 2 decimal places.) Payback period years 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