Solar Ltd$,$ a company specialising in the creation of renewable energy projects, is analysing the projected cash flows from the

installation of wind turbines along the east coast of South Africa. A report is to be presented to the shareholders at the next

annual general meeting $($AGM$)\mathrm{.}1($R$40000000)$

$2$

$3$ R$24500000$

$4($R$2$O $250000)$

$5$ R$50700000$Solar Ltd required rate of return is $12\%$ per annum.

REQUIRED

$2\mathrm{.}1$ Calculate the future value of the cash flows of Solar Ltd assuming that the cash flows will occur at the end of each year.

$(5)$

$2\mathrm{.}2$ Calculate the present value of the cash flows of Solar Ltd assuming that the cash flows will occur at the beginning of each

year.