Which of the following statements is false?
a. when calculating wacc, in principle, the weights are calculated based on market value of equity and market value of debt net of cash
b. when calculating wacc, in practice, we may use the book value of debt as a proxy for the market value of debt, especially for firms with high credit quality.
c. for a levered project, we are ultimately interested in the levered value of the project.
d. to use the wacc method for a levered project, we should discount the unlevered cash flows of the levered project by the wacc
e. none of the above.

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)