The Firm's Existing WACC Is Appropriate as a Discount Rate

Multiple Choice

The firm's existing WACC is appropriate as a discount rate on a proposed investment when ______. A the project is financed with debt from the host country
B the project has the same systematic business risk as the rest of the firm
C the project is not exposed to foreign political risk
D the optimal financial structure of the project is identical to that of the firm
Select one of the following:

A) A and B
B) A and C
C) B and C
D) B and D
E) C and D