The Pothole Inc. is an all-equity financed road construction company that is considering new projects. The company's current equity beta is 1.3. The CFO of the company has not taken a course in finance and uses the firm's current beta to evaluate all new investment opportunities regardless of their true riskiness. Which of the following statements regarding The Pothole is correct? O A. The CFO may incorrectly accept a project with a beta of 1.6. B. The CFO's project selection approach makes the firm less risky. The CFO may incorrectly reject a project with a beta of 1.5. D. The CFO underestimates the WACC for safe projects. E. The CFO overestimates the cost of capital for a project with a beta of 1.5