A businessman is thinking of setting up a factory. Machinery (Class 8 - 20% CCA) costing $800,000 would be purchased using a bank loan. The interest rate on the loan would be 9% and interest would be repaid on an annual basis, with the principal being paid back in its entirety in 15 years. The machinery is expected to have a salvage value of $100,000 in 15 years time, after which it would be sold and the asset class would terminate. Annual net revenue (revenue minus operating costs) is expected to be $300,000. If the MARR is 10% and the tax rate is 40%, use present worth analysis to determine if this project is worthwhile. Suppose all the dollar figures and the MARR in part (a) are expressed in real (constant dollar) terms. Explain which elements of the present worth calculation would be affected if the inflation rate in the economy were 5%. For any element that would change, indicate the direction of the change (i.e. does it translate into an increase of decrease in present worth). No marks will be given for precise numerical answers here - do not redo the PW calculation