Question: please if you could answer all the questions it will help me out alot thank you Beacon Company is considering automating its production facility. The









Beacon Company is considering automating its production facility. The initial investment in automation would be $8.44 million, and the equipment has a useful life of 7 years with a residual value of $1,020,000. 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. 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 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 $ Per Unit $92 $ $19 20 $ 9 48 $ 44 Current (no automation) 82,000 units 92 Current (no automation) 82,000 units Per Unit 19 20 Required: 1-a. Complete the following table showing the totals. (Enter your answers in whole dollars, not in millions.) 9 Total $? 48 44 ? $ $ 1,070,000 ? Total 1,070,000 Per Unit $92 Proposed (automation) 124,000 units $ 19 ? 9 ? $ S Per Unit Proposed (automation) 124,000 units $ $ 92 19 Total $? 9 ? $ 2,290,000 48 Total $ 2,290,000 4 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. Euture 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. (Euture Value of $1. Present Value of $1. Euture 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
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