Infrastructure Coursera Quiz Answers - Financing And Investing In
Financing and Investing in Infrastructure Coursera Quiz Answers
- Unlevered vs. levered IRR
- Weighted average cost of capital (WACC)
- Discounted cash flow (DCF) for long-lived assets
- MACRS depreciation benefits (U.S.)
- A) Only the construction company.
- B) The traffic police.
- C) The granting authority (government) as per the concession agreement.
- D) Local shop owners.
- A) Because debt is more expensive than equity.
- B) Due to the leverage effect (financial leverage).
- C) Because equity is paid first in the waterfall.
- D) Project IRR ignores taxes, Equity IRR includes them.
4. What are the benefits of investing in infrastructure? Unlevered vs
Week 2: Infrastructure Investment Trends and Opportunities A) Only the construction company
Answer: An existing asset with a stabilized cash flow Rationale: Brownfield means the asset is already built. Investors buy it for yield, not speculation. Greenfield deals with construction risk. such as pension funds
Pros: Teaches industry-specific vocabulary, essential legal frameworks, and practical financial modeling basics.
- Public-Private Partnerships (PPPs): PPPs involve collaboration between the public and private sectors to finance, build, and operate infrastructure projects.
- Government funding: Governments can provide funding for infrastructure projects through taxation, borrowing, or sovereign wealth funds.
- Private sector investment: Private sector investors, such as pension funds, insurance companies, and infrastructure investment trusts (InvITs), can invest in infrastructure projects.
- Grants and subsidies: Governments and international organizations can provide grants and subsidies to support infrastructure development.
