1. The weighted average cost of capital Based on your understanding of the weighted average cost of capital, complete the following statements: of capital (WACC) isu process either as the value (NPV) or the compared used in the calculation of a project's net present against which a project's internal rate of return (IRR) is In general, there is relationship between a firm's risk level and its weightecd average cost of capital. True or False: Privately held firms tend to rely almost exclusively on the use of market value weights in the calculation of their weighted average cost of capital. O True O False True or False: The weighted average cost of capital (WACC) represents the minimum return that a firm should earn on new investments exhibiting its average level of risk. O True O False