The CFO of a company believes that the overall WACC, rather than the average WACC should be used when valuing lower-risk and higher-risk projects because the company obtains capital for all projects from the same sources. What is happen over time if the overall WACC is used? The company will take on too many high-risk projects and reject too many low-risk projects. The company will take on too many low-risk projects and reject too many high-risk projects. Things will generally even out over time, and, therefore, the firm's risk should remain constant over time. The company's overall WACC should decrease over time because its stock price should be increasing. The CFO's recommendation would maximize the firm's intrinsic value