MJ Industries is choosing between two projects. Both projects have similar payback periods and net present values. Project A involves a licensing arrangement with an option to abandon, which makes the project less risky than Project B, which requires the purchase of machinery with little resale value if the project fails. MJ Industries should calculate the net present value of each project:

Group of answer choices

Using the company's weighted average cost of capital.

Using a discount rate of zero for Project A since it is not risky.

Using a lower discount rate for Project A than Project B.

Using a higher discount rate for Project A than Project B.