The Sisneros Company is considering building a chili processing plant in Hatch, New Mexico. The plant is expected to produce 50,000 pounds of processed chili peppers each year for the next 10 years. During the first year, Sisneros expects to sell the processed peppers for $2 per pound. The price is expected to increase at a 7 percent rate per year over the 10-year economic life of the plant. The costs of operating the plant, exclusive of depreciation, including the cost of fresh peppers, are estimated to be $50,000 during the first year. These costs are expected to increase at an 8 percent