A firm is likely to use short term debt when managers expect (lower earnings that will decrease or higher earnings that will increase) the value of the firm's stock?

Project financing insulates a firm's nonproject assets from the risks involved in the project being financed (true or false)

Based on your understanding of project finance, which of the following statements is true?

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.

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.