You have determined WACC for your company is 9.5%. But company management is concerned that the board would like an especially conservative estimate of the NPV of the cash flows for this project. Which of the following would give you a more conservative estimate?

-Raise the WACC to 12.0%.

-Lower the WACC to something below 9.5%.

-Using the company's WACC is always the most conservative estimate of NPV.