Which of these may occur if a firm 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 firm will be accepted.
III. Too many high-risk projects may be accepted.
IV. Only low-risk projects will be accepted.
II only
II and IV only
I and III only
I and IV only
I, II, and III only