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

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Accounting

Required information
[The following information applies to the questions displayed below.]
Beacon Company is considering automating its production facility. The initial investment in automation would be $7.40
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.
Determine the project's payback period. (Round your answer to 2 decimal places.)
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