Low leverage $1,000 High leve $ 1,000 Project cost $ 200 $ 600 $ 400 a) Debt b) Equity c) Revenue from project d) Interest rate on debt $ 800 $ 200 $ 200 3% 6% Question 1 When using low leverage to finance project cost, the interest payable will equal $10. Select one: O True O False Low leverage $ 1000 $ 200 $ 800 $ 200 High leverage $ 1000 $ 600 Project cost a) Debt b) Equity c) Revenue from project d) Interest rate on debt $ 400 $ 200 5% 7% Question 2 When using low leverage to finance project cost the profit will equal $110. Select one: True O False