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

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Accounting

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Beacon Company is considering automating its production facility. The initial investment in automation would be $9.11 million, and the equipment has a useful life of 7 years with a residual value of $1,200,000. The company will use straightline depreciation. Beacon could expect a production increase of 44,000 units per year and a reduction of 20 percent in the labor cost per unit.
\table[[Production and sales volume,\table[[Current (no],[automation)],[71,000 units]],\table[[Proposed],[(automation)],[115,000 units]]],[\table[[Per],[Unit]],Total,\table[[Per],[Unit]],Total],[Sales revenue,$90,$?,$90,$?
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