Required:
Using a discount rate of percent, calculate the net present value NPV of the proposed investment. Future Value of $ Present
Value of $ Future Value Annuity of $ Present Value Annuity of $
Note: Use appropriate factors from the tables provided. Negative amount should be indicated by a minus sign. Enter the answer
in whole dollars.
Net present valueRequired 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
$ 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.tablePeriods
