Advantages and ddisadvantages of project financing |
The initial decisions on the project involves many issues of great importance. The decision complexity derived from the fact that compound and financially demanding projects are acceptable only if expected social and economic benefits are more influential then costs associated with the project operationalization. According to the previous, project financing comes up as a potentially useful method that governments use for development promoting of the most important resources, or better still, for establishing new independent facilities at the places of major importance. This paper presents advantages and disadvantages of project financing, as one of the financing models, as well as circumstances in which it can be meaningful for investors. The paper particularly points out the fact that project financing is a kind of financing model that strives to satisfy all contract parts, taking into account their mutual interests and a return on joint investments as well.
Slađana Benković, Miloš Milosavljević |
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