21. Which is the most correct when considering the effect of using debt as financial leverage

    1. A) the use of debt is advantageous when the cost of debt is higher than a projects IRR

    2. B) the use of debt is advantageous when the cost of debt is lower than a projects IRR

    3. C) using debt as financial leverage is always advantageous

    4. D) using debt as financial leverage is never advantageous because its risk is much higher than

       using equity.