A firm is using the same company-wide cost of capital for evaluating all of its capital investment projects. Which of the following statements describes the likely result of such a policy?

I. Rejection of good, low-risk projects

II. Acceptance of poor, high-risk projects

III. Correct acceptance of projects with the same risk as the companys risk

A) I only

B) II only

C) III only

E) I, II, and III only