In which of the following cases would it most likely be appropriate to use the WACC that relates to existing operations?

Multiple Choice

• A pizza delivery service is planning to expand by adding a sit-down pizza restaurant.

• A grocery store owner is considering adding a bakery and a delicatessen to his store.

• A

• gas tank manufacturer is contemplating switching to manufacturing tie-outs for dogs.

• A gas station owner is considering adding a convenience store.

• A manufacturer of garbage bags is considering expanding production capacity to meet increasing demand.