musltiple answers possible

flows from dividends over the project life cycle. (e) Legal restrictions on foreign equity ownership may make licensing (as opposed to UVB) a necessity in cross-border collaborations. 44. Question Which of the following statements about real options are correct? (a) Wone option is executed, other options are created. (b) Entering into an International Joint Venture can be considered as buying an option (c) If one option is executed, other options are foregone. (d) The value of a real option on an investment decreases with uncertainty. (e) The value of a real option on an investment increases with uncertainty. 45. Question Which of the following statements about International Joint Venture contracts are correct? (a) Regulation on foreign equity ownership sometimes necessitates cooperation with local firms it a foreign firm wants to invest. (b) It capital market segmentation exists, IJV partners must have the same cost of capital. (c) Different tax rates between investing firms' home country complicate the distribution of UJV income. (d) Royalties can not be part of an IJV contract. (e) of both firms only invest cash into an IJV. profits from the NPV can be distributed tol- lowing the 50-50 rule 46. Question Which of the following statements about project finance are correct? (a) Assets of the sponsors are usually used as collateral in a project finance investment (b) The leverage possible in a project finance investment depends strongly on the existing capital structure of the sponsor firms. (c) Assets and liabilities of the project finance indestment are not on the balance sheet of a sponsor company. (d) An economic rationale for investing in a project finance investment is to get access to the future cash flows it creates (e) Leverage of project finance investments is usually much higher than in the sponsor firms. 47. Question Which of the following statements about project finance are corred? (a) In a project finance Investment, a separate legal entitity that conducts a project is created (b) It cash shorttails occur, lenders can usually take recourse to sponsors for substituto payments (c) Project finance is usually used to finance intangible assets that are employed to obtain a single cash flow at the end of the investment period (d) The asset created by project finance is often used as collateral in a project finance deal