When comparing the APV (Adjusted Present Value) and WACC (Weighted Average Cost) methods, which of the following statements is not correct:

Select one:

A.

APV uses the all equity discount rate without further adjustment and WACC uses the all equity discount rate adjusted for financial leverage.

B.

Both use the discounted project cash flows to obtain present value.

C.

APV adjusts the basic NPV formula as though it is an unlevered firm in order to reflect the value of subsidised financing.

D.

APV adjusts the basic NPV formula as though it is an unlevered firm and reflects the tax benefit of leverage.