Question: If a company with projects that have substantially different risks uses a uniform discount rate for capital budgeting, what happens? Group of answer choices All

If a company with projects that have substantially different risks uses a uniform discount rate for capital budgeting, what happens?

Group of answer choices

All of the other answers are correct.

Over time, the companys WACC falls.

Over time, the company becomes less risky than it would otherwise have been.

The company destroys value by investing in negative NPV high risk projects and not investing in positive NPV low risk projects.

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