Question $1$

$0\mathrm{.}2$ p

When evaluating any capital project proposal, the cost of capital:

$$ is dependent upon the source of the funds obtained to fund that project.

should be applied as the discount rate for all other projects considered by the firm.

is dependent upon the firm's overall capital structure.

is determined by the overall risk level of the firm.

$$ depends upon how the funds raised for that project are going to be spent.

Ouestion $2$

$0\mathrm{.}2$ pts