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

1.reject some positive net present value projects.

2.accept some negative net present value projects.

3.favor high risk projects over low risk projects.

4.increase its overall level of risk over time.

A.1and 2 only

B.3 and 4 only

C.1,2,and 3 only

D.1,2,3,and 4 only

Answer with the reasons would be good :)