Which are true when a firm uses its WACC as discount rate for all projects it undertakes:

I. It will reject some positive net present value projects

II. It will accept some negative net present value projects

III. It will favor some high risk projects over low risk projects

IV. It will increase its overall level of risk over time

Select one:

a. I and IV only

b. III and IV only

c. I and III only

d. I, III, and IV only