单选题

Which of the following statements about project risk is FALSE?（）

A、 The riskier the project's income stream, the higher the discount rate should be.
B、 Mutually exclusive projects should be analyzed using the firm's weighted-average cost of capital (WACC).
C、 If investors are not well diversified, they may want management to concentrate more on project risk than on market (beta) risk.

【正确答案】 B

【答案解析】

Mutually exclusive projects should be analyzed based on NPV. WACC may be adjusted up or down to reflect differences in project risk.