please answer both questions, thanks!

Question 3 1 pts Crunchy Corp has several projects in their line of nuts and candy. The risk of the nut products are low: Crunchy is considering adding expensive chocolate nut products which have a higher risk due being luxury items. Crunchy has a weighted average cost of capital of 7%. The luxury chocolate would only use a rate higher than the cost of capital if the cash flows are higher than in other products. All products required rates should be 7% as that is the cost of raising capital. When analyzing the NPV of the luxury chocolate products the required rate should be greater than 7% The chocolate products should be evaluated using a required rate less than 7% A high risk project such as the luxury chocolates should never be considered by a company producing low risk products. Question 4 1 pts When a company has a high proportion of fixed costs (as compared to variable costs) When revenues change the percentage the company's Earnings Before Interest and Taxes (EBIT) will change is lower than it they had high variable costs. the company can more easily borrow without affecting risk much. Othere is relatively low operating leverage EBIT will change a relatively large amount when revenues change. This will protect the company from losses especially when there is an economic downturn