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Abstract

Project financing, which can distribute risks and returns more efficiently than conventional strategies, gained popularity and increased innovation in the 1980s and 1990s. This is a broad discussion of the characteristics of project financing, the triggers for internal financing vs. project financing, risk sharing, financial evaluations such as credit and valuation, and key questions to consider.

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Abstract

Project financing, which can distribute risks and returns more efficiently than conventional strategies, gained popularity and increased innovation in the 1980s and 1990s. This is a broad discussion of the characteristics of project financing, the triggers for internal financing vs. project financing, risk sharing, financial evaluations such as credit and valuation, and key questions to consider.

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