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Why Are Finances The Core of Every Project?: 1. Cost-Benefit Analysis
Why Are Finances The Core of Every Project?: 1. Cost-Benefit Analysis
Project finance helps finance new investment by structuring the financing around the project's
own operating cash flow and assets. The technique can alleviate investment risk and raise finance
at a relatively low cost. Following are the few reasons why finances are the core of every project;
1. Cost-benefit analysis
To assess economic viability, financial stability and corporate viability of a project through
investment appraisals over a period of time. This will allow us to forecast the success of a
project and determine what value will be returned.
2. Budgeting
One of the very important reasons is that every project needs to be planned according to a
budget. It will allow them to effectively allocate, forecast and assign a cost to different areas
of a project optimizing spending.
1. Curiosity
Accounting always fascinated me. Around 5 years ago, I took Commerce for my bachelors.
Because I want to explore Accounting and finance. Years passed, I completed my graduation
and cleared CMA US after that. But still, after all these years I am feeling the same curiosity. I
want to explore finance more, practice what I learned, experiment and learn new things.