You are investing in a new small$-$scale meat processing plant. It requires an initial cash expenditure of $$460,000$ and is expected to yield annual revenues and operating expenses over a $10-$year planning horizon according to the below table, with zero salvage value at the end of the $10-$year period. Assume the plant is depreciated using a straight$-$line method over the $10$ years and that you are in the $28\%$ tax bracket.

Year Revenue Operating Expenses

$1$ $$155,000$ $$100,000$

$2$ $$155,000$ $$90,000$

$3$ $$155,000$ $$85,000$

$4$ $$155,000$ $$65,000$

$5$ $$155,000$ $$60,000$

$6$ $$155,000$ $$60,000$

$7$ $$155,000$ $$60,000$

$8$ $$155,000$ $$60,000$

$9$ $$155,000$ $$60,000$

$10$ $$155,000$ $$60,000$

$1.$Using a discount rate of $6\%,$ calculate the Net Present Value $($NPV$)$ of this investment. $($see steps below$)$ According to NPV$,$ is this investment worthwhile?

$2.$uppose interest rates increase suddenly. Now the discount rate you apply to this investment increases to $10\%.$ How does this change your answer to question $(1)?$