The South African government has entered in a 30-year agreement (for the period 1996 2026) with the Government of Lesotho, in relation to the supply of water to the local water distribution centers in the country. South African initial investment into the project was R2.6 billion. Assume the average interest rate is 10% per annum. From an accounting point of view, the transaction was recorded initially at R2.6 billion.

Do you think that it would be correct to assume that after 30 years the project will still be worth R2.6 billion? Justify your view.