Project Finance Is Characterized by Which of the Following Features

question 23

Multiple Choice

Project finance is characterized by which of the following features?

• A) long project life
• B) high capital intensity of undertaking the investment
• C) production or provision of a basic commodity or service
• D) All of the above.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income or profits.

After-Tax Discount Rate

The discount rate used in capital budgeting that accounts for the effects of income tax.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of a firm's shareholders' wealth maximization.

Straight-Line Depreciation

A way of assigning the cost of a tangible asset throughout its service life in even annual portions.