Mid City Products Inc. (MCP), developed standard costs for direct material and direct labor. In 2017, MCP estimated the following standard costs for one of their most popular products.

A company uses one weighted average cost of capital to evaluate all future projects. This company has 3 divisions (low risk, moderate risk, and high risk).

How would this company reduce the probability of incorrectly accepting high-risk projects?

	A.	Add a negative adjustment factor to its weighted average cost of capital.
	B.	Add a positive adjustment factor to its weighted average cost of capital.
	C.	Use one weighted average cost of capital.
	D.	The company should not use the weighted average cost of capital.