Question 4 15 Marks Consider a project that generates the following sequence of cash flows over six years: Year 0 Cash Flow (R in million) -59.00 4.00 5.00 6.00 2 7.33 8.00 825 Required: (3) 4.1. Calculate the NPV over the six years using the discount rate of 11 %. 4.2. This project does not end after the sixth year, but instead will generate cash flows far into the future. Estimate the terminal value, assuming that cash flows after year 6 will continue at R8.25 million per year in perpetuity, and then recalculate the investment's NPV. (6) 4.3. Calculate the terminal value, assuming that cash flows after the sixth year grow at 2 percent annually in perpetuity, and then recalculate the NPV. 6