What decision should be made on a project with above-average market risk? Multiple Choice

a. Accept if the cash flows discounted at the WACC have a positive NPV.

b. Discount the cash flows at the IRR and accept if NPV is positive.

c. Accept if the IRR is greater than the WACC.

d. Use a higher discount rate than the WACC to reflect the projects risk and accept if NPV is positive at this higher discount rate.