Which of These May Occur If a Company Uses Its

Multiple Choice

Which of these may occur if a company uses its overall cost of capital as the discount rate for all projects? I.Profitable low-risk projects may be incorrectly rejected.
II) Only projects with risks similar to the current company will be accepted.
III) Too many high-risk projects may be accepted.
IV) Only low-risk projects will be accepted.

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