$4)$ Fresco, LLC$,$ an organic fruit grower, is considering purchasing an existing organic peach farm for $$16$ million, $25\%$ of which will be attributed to the cost of land and $75\%$ to that of the infrastructure and equipment. Although the remaining useful $($economic$)$ life of the farm is equal to $20$ years, the company is planning to resell the farm to a partner company for $$20$ million at the end of Year $10.$ While the land will not be subject to depreciation, the infrastructure and equipment will be depreciated to zero book value over $20$ years using the straight$-$line depreciation method $($but we have to sell at the end of year $10).$ The farm is expected to produce a steady revenue of $$3$ million per year; the operating expenses $($excluding depreciation$)$ will be equal to $60\%$ of the revenues. Both the income tax rate and the capital gain tax rate are equal to $25\%.$ The company is using $20\%$ of debt and $80\%$ of equity for all of its projects; the company$$s cost of equity is equal to $18\%,$ while its cost of debt $($before$-$tax$)$ is equal to $8\%.$

a$)$ Estimate the project$$s cash flows year by year. $(20$ Points$)$

b$)$ Estimate the project$$s WACC. WACC is used as disc rate $(5$ Points$)$

c$)$ Estimate the project$$s NPV $($use may use the Excel formula$).(5$ Points$)$

d$)$ Estimate the project$$s IRR $$manually$($you may use the Excel NPV formula as you do the guessing$).$