If a firm applies the same discount rate to all projects for all of its divisions, the firm will incorrectly evaluate projects and will also become riskier over time. Explain why this occurs and how it can be prevented

Trustees of the Pallor Corp. pension plan ask consultant Donald Millip to comment on the following statements. What should his response be?a. Median manager benchmarks are statistically unbiased measures of performance over long periods of time.b. Median manager benchmarks are unambiguous and are therefore easily replicated by managers wishing to adopt a passive/indexed approach.c. Median manager benchmarks are not appropriate in all circumstances because the median manager universe encompasses many investment styles.

I think question 3 is not answered clearly.  If Project A is rejected due to negative NPV, then all positive NPVs projects should be accepted.  The answer is not clear. Please correct me if I am missing something.    Question 3) If the firm uses the discounted-payback rule, will it accept any negative NPV projects? Will it turn down any positive NPV projects? How do you know?    Your answer is:  No Due to Project A's negative NPV, it cannot cover the initial investment within its useful life. Will it turn down any positive NPV projects? It will reject projects with positive NPVs but not those with negative NPVs. If all potential cash flows are taken into account but the project still doesn't reach the designated cutoff point, the NPV can still be positive.

what happens if a company doesn't manage risk ?