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?

Multiple Choice

• 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.