You are a financial manager and are evaluating a NEW investment. Parts a and b of this question are independent of each other.

a) Can you use your firms WACC to evaluate this new investment if the risk of this new investment is comparable to that of the rest of the firm, other things equal? Answer in terms of YES or NO. b) Can you use your firms WACC to evaluate this new investment if this new investment is expected to significantly alter the firms debt-equity ratio, other things equal? Answer in terms of YES or NO.