$.$ When evaluating if a company should accept a new contract to produce more

product it should:

A$.$ Evaluate all possible fixed cost of accepting the contract.

B$.$ Evaluate the propose contract using a contribution margin approach.

C$.$ Accept the new contract if the sales price for the product is equal to or

higher than the current sale price.

D$.$ Accept the new contract if fixed costs will remain the same.

$9.$ Generally a corporation will use:

A$.$ Equity financing to fund capital projects.

B$.$ Internal funds to fund capital projects

C$.$ Short term lines of credit to fund capital projects.

D$.$ Long term borrowing to fund capital projects.

$10.$ After calculating WACC for determining the required rate of return a

corporation must achieve on a capital project, an addition percentage may be

added to take into consideration:

A$.$ How large the project is$.$

B$.$ Addition risk the project may bring to the corporation above what the

normal acceptable risk is$.$

C$.$ The interest rate are in the bond market.

D$.$ How long will it take to complete the project