Drag the line on the left side to change the y-intercept of the WACC line. Changes in the y-intercept often are caused by inflation or deflation. Observe how changing the intercept influences the acceptance region and the rates of return needed by the three firms. Drag the line on the right side to change the slope of the WACC line. Changes in slope reflect risk. A steeper slope means there is greater risk, while a flatter slope means there is less risk. Observe how changes in risk (the slope of the line) influence the acceptance region and the rate of return required by the three projects.