Financing And Investing In Infrastructure Coursera Quiz Answers May 2026
Q10: Why is the Equity IRR typically higher than the Project IRR?
Answer: B) Due to the leverage effect.
Q11: Which of the following is NOT a typical infrastructure investor?
Answer: C) High-frequency hedge fund.
Q12: What is a "Refinancing Bonus"?
Answer: C) A gain realized when the project replaces expensive construction debt with cheaper long-term debt after operational risk falls.
Q4: In a non-recourse project finance structure, lenders can claim repayment from: Q10: Why is the Equity IRR typically higher
Answer: The project's cash flows and assets only Rationale: "Non-recourse" means the bank cannot go after the shareholders' other assets if the project fails.
Q5: What is the primary purpose of an SPV (Special Purpose Vehicle)?
Answer: To contain project risk insulate shareholders from liability Rationale: Bankruptcy remoteness. If the tunnel collapses, the construction company's HQ isn't seized. Answer: B) Due to the leverage effect
Q6: Which project phase carries the HIGHEST risk?
Answer: The construction phase Rationale: Time overruns and cost overruns kill projects. Once operational, risk drops significantly.
This is the most calculation-heavy section of the course. You will likely need a financial calculator or Excel. Q11: Which of the following is NOT a
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