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Beacon Company is considering automating its production facility. The initial investment in automation would be $ million, and the equipment has a useful life of years with a residual value of $ The company will use straightline depreciation. Beacon could expect a production increase of units per year and a reduction of percent in the labor cost per unit.
tableProduction and sales volume,tableCurrent noautomation unitstableProposedautomation unitsPerPer,UnitTotal,Unit,TotalSales revenue,$$$$