A firm's weighted average cost of capital is independent of the firm's use of capital is unaffected by changes in corporate tax rate is the average of a firm's cost of equity and before tax cost of debt weighted based on the firm's capital structure. will increase as the risk level of firm assets increases is irrelevant to capital budgeting decisions Question 2 (5 points) The Fly High project has an initial cost of $31,000. The project is expected to generate the following cash flows in the next four years: $11,400,$12,100,$15,200, and $9,700. If the discount rate is 9.5%, the project's profitability index is 1.044 0.798 1.148 1.409 1.252