Chapter 5
Project Financing
The objective of this chapter is to acquaint project managers with sources of funding for a given project, explain the implications of the costs associated with the source of funding, and describe the method for calculating the client's cost of funding. The focus is on funding at the macrolevel, or the effect on the company as a whole. Chapter 6 focuses on the costs of funding individual projects on the micro-level. Regardless of the level, there are two categories of sources for funding: debt (borrowing) and equity. It is important to note that the funding sources are also the sole providers of a company's assets.
