Transaction financed through a project financing scheme

Assignment Help Financial Management

Reference no: EM131572720

1. The simple pay back (without discount) and the pay back discounted from the same investment project:

a. The simple pay back is always lower than the discounted

b. Discounted payback is always lower than the simple one

c. They are always the same

d. Depending on the applied discount rate, sometimes one is higher, sometimes the other one

2. What is the main financial reason for a financing bank in a transaction financed through a project financing scheme?

a. Internal Rate of Return of the Project

b. Internal Shareholder Return Rate

c. Net present value

d. Coverage of debt service coverage

Reference no: EM131572720

Questions Cloud

Circumstances in project finance transaction : Select a risk that a bank is not prepare to take at any circumstances in a project finance transaction:

Determine the shape of the distribution : determine i the geometric mean rate of return for the first three years and determine the shape of the distribution.

Return on equity is indicator of accounting profitability : Return on Equity (ROE) is an indicator of the accounting profitability that gets the shareholder ...

Company can increase shareholder return : A company can increase shareholder return (measured in terms of ROE = Net Profit / Equity) when the return you get from your assets i

Transaction financed through a project financing scheme : What is the main financial reason for a financing bank in a transaction financed through a project financing scheme?

A possible solution to negative working capital could be : A possible solution to negative working capital could be to:

Operating cash flow- machinery linked to production proction : calculate the operating cash flow, the depreciation expense (also called goodwill amortization) of a machinery linked to the production process:

What is efficient market hypothesis : What is Efficient Market Hypothesis? What is the value of forward contract at initiation? Why?

What rate of return will they have to achieve in retirement : What rate of return will they have to achieve in retirement to maintain their goal with inflation?

User Account

All Pages