Suppose That the Firm's Cost of Capital Can Be Reduced

Suppose that the firm's cost of capital can be reduced from K^l under the local capital structure to K^g under an internationalized capital structure.The take-away lesson from the graph is that

A) the firm can then increase its profitable investment outlay from I^l to I^g,contributing to the firm's value.
B) a reduced cost of capital increases the firm's value not only through increased investments in new projects but also through revaluation of the cash flows from existing projects.
C) K^l and K^g represent,respectively,the cost of capital under local and international capital structures; IRR represents the internal rate of return on investment projects; I^l and I^g represent the optimal investment outlays under the alternative capital structures.
D) all of the options