Question 7 1 pts Suppose a firm has several divisions of varying risk. If the firm applies their WACC to every project in every division, then: 1. the firm is assigning a low discount rate to those projects which are mandated by the government. 11. the firm may end up accepting projects which should have been rejected. III. the firm may end up rejecting projects which should have been accepted. IV. the firm is assigning a discount rate to divisions and projects based only on the overall (or average level of risk in the firm. II, III, and IV only II, and ill only and ill only il and IV only Il and in