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Beacon Company is considering automating its production facility. The initial investment in automation would be $$7\mathrm{.}40$

million, and the equipment has a useful life of $6$ years with a residual value of $$1,040,000.$ The company will use straight$-$

line depreciation. Beacon could expect a production increase of $36,000$ units per year and a reduction of $20$ percent in

the labor cost per unit.

Required:

$1-$a$.$ Complete the following table showing the totals. $($Enter your answers in whole dollars, not in millions.$)2.$ Determine the project's accounting rate of return. $($Round your answer to $2$ decimal places.$)3.$ Determine the project's payback period. $4.$ 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.$)5.$ Recalculate the NPV using a $9$ 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.$)$

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