z # 8 Chapter 11 i Saved Help Save & Exit [The following information applies to the questions displayed below.] 5 Beacon Company is considering automating its production facility. The initial investment in automation would be $9.19 million, and the equipment has a useful life of 8 years with a residual value of $1,030,000. The company will use straight- line depreciation. Beacon could expect a production increase of 39,000 units per year and a reduction of 20 percent in the labor cost per unit. art 4 of 5 Current (no Proposed automation) (automation) 83,000 units 122,000 units Per Per Production and sales volume Unit Total Unit Total 01:46:32 Sales revenue $ 95 $ ? $ 95 $ ? Variable costs Direct materials $ 19 $ 19 Direct labor 20 ? Variable manufacturing overhead 9 9 Total variable manufacturing costs 48 2 Contribution margin $ 47 ? $ 51 ? Fixed manufacturing costs $ 1, 210, 000 $ 2, 160, 000 Net operating income ? ? 4. Using a discount rate of 13 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