a. The following table summarizes the expected cash flows in nominal terms on a new project for Mark Ltd Year Expected Cash Flows(sh'000) 115 125 inn 136 4 144 185 The firm's nominal cost of capital is 10%. The expected inflation rate is 2.5% Required: i. Estimate Mark Ltd's real cost of capital. 1 mark ii. Estimate the real cash flows on this project. 3 marks Estimate the NPV, based on real cash flows and the real discount rate. 3 marks