Using part $1$ found here:

https:$//$www$.$chegg.com$/$homework$-$help$/$questions$-$and$-$answers$/$using$-$approach$-$developed$-$venerus$-$calculate$-$cost$-$capital$-$kelvin$-$project$-$south$-$africa$-$find$-$n$-$q$87476647$

answer part $2$:

Suppose Kelvin starts with the first cash flow starts in $2004.$ The current year $($the

time of the case$)$ is $2003.$ Kelvin$$s cash flows over the next $5$ years $(20042008)$

are estimated as follows: The project$$s revenues for the current year $(2003)$ are

$$2\mathrm{.}5$ million. The revenues will grow at $1\mathrm{.}5\%$ per year through $2008.$ The

company$$s costs of goods sold are $55\%$ of sales and selling and administrative

expenses are $7\%$ of sales. Depreciation and capital expenditures are each expected

to remain constant at $$0\mathrm{.}7$ million over the next five years. Net working capital in

any given year is expected to equal $0\mathrm{.}5\%$ of that year$$s revenues. The project$$s tax

rate is $25\%$ as shown in the case. Beyond $2008,$ you expect the company$$s cash

flows to grow at a constant rate of $5\%$ per year.

Based on the above information, use Kelvin$$s WACC you calculate in $(1),$

calculate the value of Kelvin. $($No need to take into account $2003$ numbers

assuming they just occurred$)(20\%)$