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Required information

PA$11-2($Algo$)$ Making Automation Decision $[$LO $11-1,11-2,11-3,11-5]$

$[$The following information applies to the questions displayed below.$]$

Beacon Company is considering automating its production facility. The initial investment in automation would be $$9\mathrm{.}92$ million, and the equipment has a useful life of $8$ years with a residual value of $$1,120,000.$ The company will use straightline depreciation. Beacon could expect a production increase of $33,000$ units per year and a reduction of $20$ percent in the labor cost per unit.

$\backslash$table$[[$Production and sales volume,Per,$\backslash$table$[[$Current $($no$],[$automation$)],[78,000$ units$]],\backslash$table$[[$Proposed $($automation$)],[111,000$ units$]]],[,$Per,$],[$Unit$,$Total,Unit,Total$],[$Sales revenue,$$97,$$$?,$$$97,$$$?],[$Variable costs,,,,$],[$Direct materials,$$17,,$$$17,],[$Direct labor,$15,,?,],[$Variable manufacturing overhead,$9,,9,],[$Total variable manufacturing costs,$41,,?,],[$Contribution margin,$$56,?,$$$59,?],[$Fixed manufacturing costs,,$$1,220,000,,$$$2,150,000],[$Net operating income,,?,,?$]]$

PA$11-2$ Part $4$

$4.$ Using a discount rate of $14$ 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