Which party will bear the economic liability if the ElectraWave project fails?
A. T-Wave and Tidal King are liable for 20% and 80% respectively of ElectraWaves total realized economic losses.
B. As the majority equity holder, Tidal King is responsible for 100% of ElectraWaves realized economic losses.
C. As project sponsor, T-Wave is responsible for 100% of ElectraWaves realized economic losses.
D. ElectraWave is responsible for 100% of its realized economic losses.
Answer:D
Which party will bear the economic liability if the ElectraWave project fails?
A. T-Wave and Tidal King are liable for 20% and 80% respectively of ElectraWaves total realized economic losses. B. As the majority equity holder, Tidal King is responsible for 100% of ElectraWaves realized economic losses. C. As project sponsor, T-Wave is responsible for 100% of ElectraWaves realized economic losses. D. ElectraWave is responsible for 100% of its realized economic losses.
Explanation: The correct answer is d. In a project finance arrangement, the main purpose of creating a project