Wiggum PI is considering expanding their Beverly Hills security services into Afghanistan and Iraq. Wiggum PI has a weighted average cost of capital of 12%. At this WACC, the project has an NPV of $5,000. Which of the following is the most likely to be true?

Wiggum PI should not use their WACC to calculate the NPV.

Wiggum PI should expand since the NPV is greater than zero.

Wiggum PI should use a discount rate that is lower than their WACC.

Wiggum PI should not expand since the NPV is positive.