Free CP3P Financial & Economic Analysis Questions and Answers

Question 1

What is the primary goal of financial analysis in a PPP project?

Accepted Answer

Assess financial viability

Answer

Maximize tax collection

Answer

Determine political support

Answer

Limit private sector involvement

Question 2

Which metric is commonly used to assess a project's profitability?

Accepted Answer

Internal Rate of Return (IRR)

Answer

Net present liability

Answer

Operating expenses

Answer

Annual budget surplus

Question 3

What does a Value for Money (VfM) analysis evaluate?

Accepted Answer

Cost-efficiency of PPP vs traditional procurement

Answer

Political popularity

Answer

Environmental impact

Answer

Public satisfaction

Question 4

Which factor is considered in economic analysis but not in financial analysis?

Accepted Answer

Socio-economic benefits

Answer

Loan interest rate

Answer

Operational cost

Answer

Contractual penalties

Question 5

What is a Public Sector Comparator (PSC)?

Accepted Answer

A cost baseline for public-only delivery

Answer

A tax review method

Answer

A political comparison tool

Answer

A market competition analysis

Question 6

Which financial tool is used to compare future cash flows?

Accepted Answer

Net Present Value (NPV)

Answer

Taxable income

Answer

Cash reserve

Answer

Debt-equity ratio