Question: Case 1 $ 1000 $ 200 Case 2 $ 1000 $ 600 Project cost a) Debt b) Equity c) Revenue from project d) Interest rate

Case 1 $ 1000 $ 200 Case 2 $ 1000 $ 600 Project cost a) Debt b) Equity c) Revenue from project d) Interest rate on debt $ 800 $ 400 $ 200 $ 200 5% 7% Question 2 When using the case of low leverage to finance project cost, the profit will equal $110. 110 Select one: True O False

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