You have just received a R4 million sign-on bonus from your new employer following your completion of your MBA from the best business school in Africa. You decided to invest R500 000 of your bonus in a T-bill that provides a return of 6.5% and would like to invest the remainder of your bonus in a private company to enhance your returns. You came across a company called Excelon (Pty) Ltd ('the company'), a renewable energy company. You are currently in negotiations with the current sole owner of Excelon (Pty) Ltd to join in the investment of the company. The company's total assets amount to R7 million. Excelon (Pty) Ltd's cash flow from operations before interest and taxes was R1.2 million in the year just ended, and it expects that this will grow by 5% per year forever. To make this happen, the firm will have to invest an amount equal to 20% of pre-tax cash flow from operations before interest and taxes each year in capital expenditure. Annual investment in net working capital for the next year is expected to be R84 000. The South African corporate tax rate is 27%. Depreciation was R160 000 in the year just