a) Explain the term PPP/project Finance.b) Explain the two scenarios (cases) that underlie the concession agreement in the context ofthe PPP.c) Explain the key features of PPP.d) Explain the main advantages of the PPP/Project finance in the public infrastructure projectsin Zambia.
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a) Explain the term PPP/project Finance.
b) Explain the two scenarios (cases) that underlie the concession agreement in the context of
the PPP.
c) Explain the key features of PPP.
d) Explain the main advantages of the PPP/Project finance in the public infrastructure projects
in Zambia.
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- Question Onea) Explain the role of the main counterparties (sponsors) to a concession agreement under a Special Purpose Vehicle (SPV). b) Why is the SPV, sometimes, considered as an appropriate or optimal strategy to execute certain economic activities? Explain your answer. c) Explain why sometimes sponsors prefer using project financing as opposed to using corporate financing.d) Explain the term project finance in the context of our course?e) Outline the main risks associated with project finance. For each risk explain the suitable risk management strategy.Explain the role of the main counterparties (sponsors) to a concession agreement under a Special Purpose Vehicle (SPV). b) Why is the SPV, sometimes, considered as an appropriate or optimal strategy to execute certain economic activities? Explain your answer. c) Explain why sometimes sponsors prefer using project financing as opposed to using corporate financing. d) Explain the term project finance in the context of our course? e) Outline the main risks associated with project finance. For each risk explain the suitable risk management strategy.D3) Finance Summarize the economic factors that drive intra- and inter-sector outcomes and how this leads to value in Real Estate. Be sure to address 1. How rental CFs are generated; 2. How investment funds are allocated to RE and how this drives discount rates, 3. How a DCF model converts these CFs into a PV, and 4. The role of government.
- Required: (a) Calculate the payback period, accounting rate of return and net present value of each of thepotential projects.(b) Explain which of the three potential investment projects should be undertaken. Yourexplanation should be based on the results of your calculations in part (a).|(c) Critically discuss the approaches to investment appraisal used in part (a). As part of yourcritical evaluation, identify what additional information might be used to improve the approachto investment appraisal.What do managers use to evaluate domestic and international capital investment projects? A) capital budgeting B) multilateral netting C) net present value D) transfer pricing E) parent's perspectiveRequired: (NOT IN EXCEL) (a) Calculate the payback period, accounting rate of return and net present value of each of thepotential projects.(b) Explain which of the three potential investment projects should be undertaken. Yourexplanation should be based on the results of your calculations in part (a).|(c) Critically discuss the approaches to investment appraisal used in part (a). As part of yourcritical evaluation, identify what additional information might be used to improve the approachto investment appraisal.
- The average accounting rate of return (AAR): Select one: A. is the best method of financially analysing mutually exclusive projects. B. is similar to the return on assets ratio. C. measures net income as a percentage of the sales generated by a project. D. considers the time value of money. E. is the primary methodology used in analyzing independent projects.Who is responsible for the financial evaluation of investment proposals?Define each of the following terms:g. Project financing; securitization
- Capital expenditure projects may be classified in all the following types EXCEPT ____. a. obligations to meet legal requirements b. cost reduction opportunities c. capital rationing d. growth opportunities(a)Evaluate the projects using each of the following criteria, stating which project(s) Insignia Corporation Limited should choose under each criteria and why: Payback Discounted Payback Net Present Value Profitability IndexQ. Give detail about KIBOR? How does it affects financing needs?