Sipho wants to buy the Clean Car shop around the corner. The following cash flows are involved:

Time in Years Cash Flows

2 200 000

3 - 500 000

7 700 000

8 850 000

9 - 210 000

Sipho can borrow money at 19% per annum while he can invest at 17,5% per annum.

The future value of the cash inflows is

[1] R2 678 633,08.

[2] R2 583 623,93.

[3] R2 346 412,58.

[4] R2 403 837,84.

[5] none of the above.