Assigning separate discount rates to individual projects when determin

Assigning separate discount rates to individual projects when determining which projects should be accepted by the firm:

A) may cause the firm’s overall weighted average cost of capital to vary over time if the projects accepted change the overall risk level of the firm.
B) will cause the firm’s overall cost of capital to remain constant over time.
C) will cause the firm’s overall cost of capital to decrease over time.
D) will change the debt-equity ratio of the firm over time.
E) negates the principle goal of creating the most value for the shareholders.

ANSWER

A