Importance of Project Finance for Business and Sources of Funds Available to Disney for Expansion

Running head: INTEGRATED BUSINESS CHALLENGE
Integrated Business Challenge
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1INTEGRATED BUSINESS CHALLENGE
Table of Contents
1. Importance of Project Finance for Business...............................................................................2
2. Sources of Funds Available to Disney for Expansion.................................................................3
3. The Associated Cost Along with the Capital for Expansion.......................................................5
References:......................................................................................................................................6
Appendices:.....................................................................................................................................7

2INTEGRATED BUSINESS CHALLENGE
1. Importance of Project Finance for Business
There has been a newer wave in raising the global interest for the project finance
considered as the tool of economic investment during the last twenty years. The importance of
project finance for business lies in the fact that it helps in financing newer investment through
structuring the finance around the operating assets and cash flow without the presence of
additional guarantees from the sponsor (Gatti 2013).
Figure 1: Three Approaches to Structured Project Finance
Source: (Harrison and Lock 2017)
The technique helps in alleviating the investment risk and thereby raises the finance at a
lower cost for the benefit of the investors and the sponsor. Although project finance has been in
use for quite some time particularly in the natural resource and the mining projects but it its
application in larger Greenfield projects have received serious attention. The change of attitude
towards the project finance is attributed to a certain factors, the primary among them being the