Consider the following diagram that plots the WACC for Alice Ltd, the Security Market Line and the risk and expected return from two possible project 1 & 2) E(R) Project Z Project Y Risk Which of the following statements correctly describe possible implications of the above diagram? The use of the WACC for project evaluation may lead to the incorrect rejection of project More than one of the other statements are correct The use of the WACC for project evaluation may lead to the incorrect rejection of project 2 The use of the WACC for project evaluation may lead to the incorrect acceptance of project 2 The use of the WACC for project evaluation may lead to the incorrect acceptance of project c