For capital budgeting without capital constraints: . The firm should realize that as it borrows more, its WACC will decrease. All of these answers are false. The firm should keep on investing in projects as long as the marginal WACC curve is below the investment opportunity schedule (IOS) curve. The firm should keep on investing in projects as long as the marginal WACC curve is above the investment opportunity schedule (105) curve. The firm should ignore the financing decision when evaluating the project