问题
单项选择题
If a firm uses the weighted average cost of capital (WACC) to discount cash flows of higher than average risk projects, which one of the following will most likely occur（）
A. Project NPVs will be understated.
B. The overall risk of the firm’ s investments will rise over time.
C. The WACC of the firm should fall over time.
答案
参考答案：B
解析：
Risky projects will seem relatively more attractive than they actually are, causing them to be undertaken a disproportionately high percentage of the times they are considered.
