Rare Agri$-$Products Ltd$.$ is considering a new project with a projectedlife of seven $(7)$ years. The project falls under the governmentssubsidy program for encouraging local agricultural products and iseligible for a one$-$time rebate of $25\%$ on any initial equipmentinstalled for the project. The initial equipment $($IE$)$ will cost$$41,000,000.$ At the end of year $1,$ an additional equipment $($AE$)$ costing$$2,500,000$ will be needed at the end of year $3.$ At the end of seven$(7)$ years, the original equipment, IE$,$ will have no resale value butthe supplementary equipment, AE$,$ can be sold for $$50,000.$ A workingcapital of $$1,350,000$ will be needed.The project is forecast to generate sales of agri$-$products over theseven years as follows:Year $170,000$ unitsYear $2100,000$ unitsYears $3-5250,000$ unitsYears $6-7325,000$ unitsA sale price of $$150$ per unit for the first two years is expected andthen decline to $$90$ per unit thereafter as the newness of the productloses some sheen. The variable expenses will amount to $30\%$ of salesrevenue. Fixed cash operating expenses will amount to $$1,100,000$ peryear.The company falls in the $25\%$ tax category for ordinary income and $40\%$tax category for capital gain.The initial equipment is depreciated as per the $7-$year MACRS systemand the additional equipment is depreciated on a straight$-$line basis.In the event of a negative taxable income, the tax is computed asusual and is reported as a negative number, indicating a reduction inloss after tax.The initial financing of the project will be carried out as follows:$-55\%$ equity and $45\%$ debt. The company paid $$1\mathrm{.}50$ per share in the formof dividend this year, which is likely to increase at a rate of $3\%$per year for the near future. The current price of the companys stockis $$9\mathrm{.}50$ per share. The bank loan is likely to be arranged at aninterest rate of $13\mathrm{.}5\%$ p$.$a$.$You are required to:$1.$ Compute the appropriate rate for discounting the cash flows ofthe project $5$ marks$2.$ Compute the initial investment required $4$ marks$3.$ Compute the earnings before taxes for years $1$ through $75$ marks$4.$ Compute the earnings after taxes for years $1$ through $71$ mark$5.$ Compute the OCF for years $1$ through $71$ mark$6.$ Compute the Terminal cash flow $3$ marks$7.$ Compute the FCF for years $1$ through $71$ mark$8.$ Compute the NPV and IRR $4$ marks$9.$ Should the project be accepted? $1$ mark