Abhaliya [The following information applies to the questions displayed below.]Beacon Company is considering automating its production facility. The initial investment in automation would be$6.46 million, and the equipment has a useful life of 5 years with a residual value of $1,060,000. The company willuse straight-line depreciation. Beacon could expect a production increase of 43,000 units per year and a reductionof 20 percent in the labor cost per unit.Production and sales volumeSales revenueVariable costsDirect materialsDirect laborVariable manufacturing overheadTotal variable manufacturing costsContribution marginFixed manufacturing costsNet operating incomePerUnit$98Net present value$18251154$44Current (noautomation)76,000 unitsTotal$ ??$ 1,220,000?Proposed (automation)119,000 unitsPerUnit$98$18?11?$49Total?$ 2,190,000?Check my worl4. Using a discount rate of 15 percent, calculate the net present value (NPV) of the proposed investment. (Future Value of $1, PresentValue of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Negativeamount should be indicated by a minus sign. Enter the answer in whole dollars.)

Net Present Value (NPV) is a financial concept widely used in investment analysis and capital…

4. Using a discount rate of 15 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.) Net present value