A company is entering a new market with a newly developed product. They are putting

together a capital budgeting analysis $($NPV$)$ for the new product. Mark each of the following as

$($T$)$rue or $($F$)$alse:

T$($a$)$ The company should use its WACC as the discount rate for the NPV analysis of the

new project

$($b$)$ The company should include an increase in inventory levels required by the project in

the cash flows for the project

$($c$)$ If the company will be using empty space in one of its buildings, it should consider

the opportunity cost of this space in the cash flows for the project