Question: How and why does project finance create value? Hint: Think in terms of market imperfections. What are the costs associated with taxes, financial distress, information,

How and why does project finance create value? Hint: Think in terms of market imperfections. What are the costs associated with taxes, financial distress, information, incentives conflicts (agency), transaction, etc., and how does project finance increase or decrease the costs associated with these imperfections.

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