Question 4

4.1. A five-year project has a projected net cash flow of R15,000, R25,000, R30,000, R20,000, and R15,000 in the next five years. It will cost R50,000 to implement the project. If the required rate of return is 20 percent, conduct a discounted cash flow calculation to determine the NPV. (10)

4.2. Lerato intends to establish a saving account for his daughters' university education when they enter high school. He will make payments of R5 000 each into his account at the beginning of each year and will earn compound interest of 8% per annum on his investment. You are required to calculate the future value of the annuity due after five years when his daughter will have finished high school. (10)

PLEASE SHOW ALL THE CALCULATION STEPS