Q12. ABC Ltd is considering an investment project with the following cash flow forecasts (in $millions):

ABC Ltd is considering an investment project with the following cash flow forecasts (in $millions): Year o 1 2 3 4 Projected CF -$4,321 $4,172 $5,380 $3,478 -$9,768 ABC's discount rate is 7% per year. a) Should ABC Ltd accept this project? (2 marks) b) Suppose the IRR of this project is 12.91% and 47.53%. What problem arises for ABC Ltd to use the IRR method for capital budgeting? (2 marks) c) When will the NPV and IRR method lead to identical capital budgeting decisions? (2 marks)