Financing And Investing In Infrastructure Coursera Quiz Answers -
DSCR=CFADS (Cash Flow Available for Debt Service)Principal Payment+Interest PaymentDSCR equals the fraction with numerator CFADS (Cash Flow Available for Debt Service) and denominator Principal Payment plus Interest Payment end-fraction
D) Both A and C
The covers ongoing costs such as operations and maintenance, fuel or raw materials, staff salaries, insurance, and debt service (interest and principal payments). Revenues come from user fees, availability payments, or power purchase agreements. Lenders usually require a buffer (e
When approaching the graded assessments on Coursera , keep these common themes in mind:
A DSCR below 1.0x means default. Lenders usually require a buffer (e.g., 1.20x to 1.40x depending on the asset class). Loan Life Coverage Ratio (LLCR) LLCR=NPV of CFADS over the remaining loan term+Debt
What is a "Take-or-Pay" contract?
, in contrast, finances new initiatives on a sponsor’s balance sheet, and the objective is to maximize shareholder wealth. Lenders usually require a buffer (e.g.
LLCR=NPV of CFADS over the remaining loan term+Debt Service Reserve Account (DSRA)Outstanding Debt BalanceLLCR equals the fraction with numerator NPV of CFADS over the remaining loan term plus Debt Service Reserve Account (DSRA) and denominator Outstanding Debt Balance end-fraction Project IRR vs. Equity IRR