800 Question 2 (50 points) PT Cinta Flora is a firm specializing in developing Bonsai. The firm has three choices regarding when they will harvest and able to sell the Bonsai in the next 5 years, 10 years or 15 years. The firm started its Bonsai's development on January 1, 2020. The firm has 1 hectare area for its Bonsai. The firm's marketing department has surveyed the Bonsai's market price and estimate the following expected selling price: Bonsai quality Price per Bonsai Diamond IDR 20.000.000 Gold IDR 5.000.000 Standard IDR 1.000.000 The Bonsai's price increases below the inflation rate. According to the local government statistical data, the inflation rate is expected to be 5 percent per year. An actuary believes that 2 percent per year is an appropriate growth rate below the inflation rate. PT Cinta Flora executives are considering when to harvest the Bonsai. They have possible scenarios below: Time to Harvest Harvest Bons al quality Units of Bonsai Diamond Gold Standard 1 January 2025 10% 20% 70% 1 January 2030 900 10% 40% 50% 1 January 2035 900 15% 35% 50% The firm's operational manager expects that there would be 10 percent losses of every Bonsai at every quality due to incidental damage. The entire cost of harvesting is expected to be Rp 80.000,- per Bonsai. Sales and administrative expenses (fully paid in cash) are expected to be Rp 60.000,- per Bonsai. Regrettably, the 10 percent losses of harvested Bonsai still incur operational expenses because the damaged Bonsai shall be carefully and properly cleared. The firm's executives budget the operational costs to increase at the inflation rate. The operational costs are as follows: Operational Cost per 1.000 square meter Razing IDR 20.000.000 Watering IDR 25.000.000 Monitoring IDR 60.000.000 Fertilizer IDR 10.000.000 All cash flows are assumed to occur during the harvest year. The firm's executives estimate that the nominal required return rate is 12 percent, and the tax rate of 25 percent. Required: When should PT Cinta Flora harvest the Bonsai? Your analysis MUST include NPV calculations, as well as the necessary assumptions and brief explanation