Suppose a firm uses a constant WACC (hurdle rate) in determining the value of capital budgeting projects rather than adjusting for project risk. Choose the statement which accurately completes this sentence describing the possible outcomes or the firm. The firm will tend to

a) reject profitable low risk projects and reject unprofitable high risk projects

b)become less risky over time

c)reject profitable, low risk projects and accept unprofitable high risk projects

d)accept profitable low risk projects and accept unprofitable high risk projects