Which of the following statements is False regarding the difference between the asset cost of capital and the WACC (weighted average cost of capital)?

A. The WACC multiplies the cost of debt by (1-tax rate) and the asset cost of capital does not.

B. The asset cost of capital can be used to evaluate an all-equity project with the same risk as the firm.

C. Because interest expense is tax-deductible, the effective cost of the debt is small that the cost of debt rD. As a result, the asset cost of capital is smaller than the WACC.

D. None of the above.