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Project financing is a financing technique in which large projects, such as infrastructure projects, natural resources projects, pipelines, energy explorations projects, and so on, are
Project financing is a financing technique in which large projects, such as infrastructure projects, natural resources projects, pipelines, energy explorations projects, and so on, are financed by a lead sponsor for the project. The financier expects to receive payments based on the cash flows generated from the project itself. The Eurotunnel, which runs between Great Britain and France, is an example of a project financed using this technique. In project financing, who decides whether to reinvest the cash flows generated from the project or to use the cash flows to reduce the loan balance by paying more than the minimum payment required? Project managers Lenders Consider the following two statements: Project financing allows firms to maintain confidentiality. Project financing requires that managers reveal proprietary information to all investors. Based on your understanding of project financing, which of the following statements is true
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