Project financing is a financing technique in which large projects, such as infrastructure projects, natural resources projects, pipelines, energy explorations projects, and so on, are financed by a lead sponsor for the project. The financier expects to receive payments based on the cash flows generated from the project itself. The Eurotunnel, which runs between Great Britain and France, is an example of a project financed using this technique. True or False: Project financing insulates a firm's nonproject assets from the risks involved in the project being financed. O True O False Consider the following two statements: Statement A Managers will be more willing to take on large, risky projects if they raise capital through project financing and if the project does not drastically affect the company's performance if the project fails. Statement B Managers become less willing to take on large, risky projects if they need to raise capital through project financing and if the project does not drastically affect the company's performance if the project fails. Based on your understanding of project financing, which of the following statements is true? O Statement A Statement B