After detailed analysis, a company's CFO has recommended an expansion of the factory that will require significant automation and funding to complete. The CFO recommends that the company borrow to finance the project. Which of the following statements is LEAST accurate with respect to the impact that debt with have on the financial profile of the company?

A. As the proportion of debt in the capital structure increases, net operation profit after tax (NOPAT) will decrease.

B. In general, as the amount of debt in the capital structure increases, the cost of any subsequent external equity will also increase.

C. In general, as the proportion of debt int eh capital structure increases, the cost of the debt will also increase.

D. Beyond a certain level of debt, the prospects of default will begin to outweigh the tax shield that comes with debt.