(Solution Download) If the loan life cover ratio is greater than 1 a


If the loan life cover ratio is greater than 1:
a) It means there would be a cash surplus for sponsors if the investment were liquidated immediately.
b) It means there would be a cash deficit for sponsors if the investment were liquidated immediately.
c) It means that for every year of project development, the SPV can generate sufficient resources to cover financial outflows.

 







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