A low risk division of your company offers a low risk project, relative to an average project. You rejected the project because it had an IRR slightly lower than the WACC. The project had a positive NPV. What are the implications of not risk-adjusting the WACC in this case?

Question 1 options:

	The implications are that the shareholder is better off without this project.
	There are none. We wouldn't want a project with an IRR below the WACC anyway.
	We should have risk adjusted the WACC downward and accepted the project based on NPV alone. We just cost the company a profitable project.