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 Diamond Gold Standard Harvest Units of Bonsai 1 January 2025 1 January 2030 1 January 2035 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 Bonsai quality Gold 20% 40% 35% 800 900 900 IDR IDR IDR Operational Razing Watering Diamond 10% 10% 15% 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: Monitoring Fertilizer Price per Bonsai 20.000.000 5.000.000 1.000.000 IDR IDR Cost per 1.000 square meter IDR IDR Standard 70% 50% 50% 20.000.000 25.000.000 60.000.000 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.