In the Graph

In the graph,

A) K^l and K^g represent, respectively, the cost of capital under international and local capital structures; IRR represents the internal rate of return on investment projects; I^l and I^g represent, respectively, the optimal investment outlays under the alternative capital structures.
B) 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.
C) None of the above