Assuming ABC Ltd$$s free cash flow is R$45000$ in year one and grows at a constant rate of $4\%$ p$.$a$.$ for years $2$ through to year $5.$

After year $5,$ the free cash flows grew by $3\%$ into perpetuity.

Calculate the present value of the $$terminal value$$ free cash flow $($excluding the present value of cash flows for years $1$ to $5).$

The cost of capital for ABC Ltd is $18\%.$

Assume cash flows are earned at the end of each period.

Use full years in your discounting calculations.