If a Firm Uses the Same Company Cost of Capital

Multiple Choice

If a firm uses the same company cost of capital for evaluating all projects, which situation(s) will likely occur?
I.The firm will reject good low-risk projects;
II.The firm will accept poor high-risk projects;
III.The firm will correctly accept projects with average risk

A) I only
B) I and II only
C) I,II, and III
D) II only