Assuming all cash flows occur at the end of the year and estimated WACC for ABC Ltd is 12.5%, what dhould the firm do if they use NPV Method to evaluate the project?

QUESTION 10 This is a continuation of the previous problem. ABC Ltd. is planning to set up a new plant. The new project has the same risk profile as the overall company. The plant requires an initial investment of $100 million. The project is expected to generate the following cash flows: Year Cash flow ($ mn) 1 48 2 55 3 65 4 -53 5 52 6 -69 Assuming all cash flows occur at the end of the year and estimated WACC for ABC Ltd. is 12.5%, what should the firm do if they use NPV method to valuate the rect? Assuming all cash flows occur at the end of the year and estimated WACC for ABC Ltd. is 12.5%, what should the firm do if they use NPV method to evaluate the project? O A Doesnt matter as NPV = 0 OB. NPV can not be estimated . Reject the project OD. Accept the project