It has been claimed that the weighted average cost of capital (WACC) should only be used to evaluate investment decision

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It has been claimed that the weighted average cost of capital (WACC) should only be used to evaluate investment decisions, involving discounted cash flow calculations, where:
1.Theproposed project does not alter the business risk profile of the business.
2.TheWACC reflects the long-term capital structure of the business.
Which ONE of the following combinations (true/false) is correct?
A. Statement 1 = True, Statement 2 = True
B. Statement 1 = True, Statement 2 = False
C. Statement 1 = False, Statement 2 = True
D. Statement 1 = False, Statement 2 = False