Question 1 (1 point) Retake question Why might a project equity sponsor wish to include Liquidated Damages in the DBJV contract? (Select best answer.) Defer lifecycle risk exposure Incentivize early completion and revenue start-up Pay senior lien debt service in the event of project delay Hold DBJV accountable for owner changes leading to contract default Match the following descriptions with the financing tool they describe. TIFIA loan 1. Short-term private sponsor debt Private Activity Bonds 2. Private placement debt Bank debt Mezzanine debt USDOT-authorized tax-exempt bonds 3. Construction-period private loan 4. Long-term structured private financing 5. At-risk sponsor investment 6. Long-term USDOT direct loan Equity Label each of the following as either a project funding or project financing tool. Advertising fee > > > Availability payment Taxable municipal bond Federal (FWHA) grant Property tax 1. Funding 2. Financing Subordinate sponsor debt Milestone payment Federal TIFIA loan Question 2 (1 point) Retake question Identify benefits of equity investment in public infrastructure. (Select each correct answer.) Low cost of capital Financial discipline throughout the project lifecycle Allocation of risk to private sector Attracting low-cost debt financing Incentivizing technical innovation Balance sheet exposure for private sponsor Incentivizing federal participation in project financing Limiting focus to project delivery Incentivizing lower-cost refinancing as project is "de-risked" Competitive advantage in winning projects