Calculate the Net Present Value (NPV) for a project with an initial cost of ZAR 10,000,000 and specific annual cash flows over 5 years, using the parent firm's cost of capital.

Here's the solution for the NPV calculation:

Given Data:

• Initial cost: ZAR 10,000,000
• Cash flows (ZAR):
  • Year 1: ZAR 3,000,000
  • Year 2: ZAR 4,000,000
  • Year 3: ZAR 5,000,000
  • Year 4: ZAR 6,000,000
  • Year 5: ZAR 7,000,000
• Parent firm's cost of capital