If a firm uses its WACC as the discount rate for all of the projects it undertakes then the firm will tend to:

I. reject some positive net present value projects.

II$.$ accept some negative net present value projects.

III. favor high risk projects over low risk projects.

IV$.$ increase its overall level of risk over time.

I and III only

III and IV only

I, II$,$ and III only

I, II$,$ and IV only

I,$II,$III, and IV