How is the concept of WACC (weighted average cost of capital) covered in Chapter 11 used in capital budgeting exercises?

a. Capital budgeting allows the manager to reduce the cost of capital.

b. Capital budgeting questions can be answered by discounting future cash flows at the cost of capital.

c. The cost of capital is always higher after capital has been budgeted appropriately.

d. If the manager budgets capital at the cost of capital, any future earnings can be budgeted more successfully.