Question 5 A major landscape contractor who has bid successfully on a large-scale Ipoh beautification and urban greening project has offered to buy all 10,000 flowering dogwood trees at a price of RM28,000, payable immediately. However, the contractor does not need the trees for three years. If Suresh accepts, he will be obliged to deliver 10,000 trees three years from today. If anything should happen to his own crop, he would need to buy trees on the open market at the prevailing price, which might be higher or lower than the price estimated in Question 1. Should Suresh accept the offer if his required rate of return is 10%? Discount the price at 10%. Critically evaluate the answer. (10 marks)

[Total mark=50 marks]