#2. (10pts) Bay Properties is considering starting a commercial real estate division. It has prepared the following four-year forecast of free cash flows for this division. Year 0 -$200 Year 1 $25 Thousands Year 2Year 3 $20 Year 4 $29 Free cash $25 flow Assume cash flow after year 4 will grow at 2.9% per year, forever. If the cost of capital for this division is 10%, what is continuation value in year 4 for cash flows after year 47(5pts) Calculate NPV of this project and what is the company's decision on this project? (5pts). Show your work