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Project finance would be the economical Evaluation of the entire life-cycle of the project. Generally, a cost-reward analysis is used to find out if the financial benefits of a project are bigger compared to the economic charges. The Assessment is particularly significant for extended-expression projects of expansion CAPEX.

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Because the priority use of money flow is usually to fund functioning prices and also to assistance the debt, only residual money once the latter are protected can be used to pay dividends to sponsors enterprise the project.

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