Which of the following statements is incorrect?(a) Economic decisions arc time invariant.(b) Time and risk arc the most important factors in any in vestment evaluation.(c) For a large-seal!! engineering project. engineers must consider the impact of the project on the company·s financial statemen ts.( d) One of the primary roles of engineers is to make capital expenditure decisions.

The managers in a firm have decided to move the company's headquarters from a rented space to a new building that the company will purchase. This is an example of Multiple Choice a cash flow decision. a capital budgeting decision. a net working capital decision. a capital structure decision. a short-term financing decision.

3) Which of the following statements correctly relates to project appraisal? A) Changes in working capital as a result of implementing a project should be included in the project appraisal. B) The costs of surveys and feasibility studies incurred prior to the decision to implement a project should be included in the project appraisal, as they are a cost of the project. C) The effect of a new project on other parts of a business is irrelevant when trying to decide whether to go ahead with the new project. D) Depreciation is a legitimate cost of a project and should be included in a project appraisal.

Explain the conditions under which a company’s WACC is appropriate to use as  the cost of capital when evaluating the company’s projects.