Q No. 3. Marks:12 JKT Group is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of Rs15million.This investment will consist of Rs 5 million for land and Rs 10 million for trucks and other equipment. The land, all trucks, and all other equipment are expected to be sold at the end of the 10 years for a price of Rs.7 million which is Rs.2million above book value. The farm is expected to produce a cash flow of Rs.2.2 million each year from operations during the period. The tax rate is 30% for ordinary income as well as capital gain, and the appropriate discount rate is 12 percent. 1.Calculate NPV, IRR and present value index. 2.Whether we should accept the project based on our calculations in part (i). 3.Explain why we use estimated cash flows instead of estimated accounting earnings in estimating the NPV of a project.