In order to determine the ability of a project to meet its debt obligations, it is important to forecast the project cash flows. Explain why it is important to carry out a cash flow analysis in project finance and the five factors that need to be considered when calculating cash flows.

Explain the two terms in relation to project finance Limited recourse and Non- recourse.

Identify three groups of potential risks to project finance and explain how you can hedge against such while managing the project.