Risk – what will happen to safety (employees, customers), theenvironment, or the business (reputation & financial) if thisproject is not done?
Capital – is this going to be equity or debt. There are othercapital structures but these two are typical. The equity can befrom venture capital or capital raised from selling the business’equity position (selling shares based on projected revenue). Thedebt capital is taking out a loan against projected revenues and oragainst assets (the cost of capital).
Example, a business must do an IT project to upgrade their ITinfrastructure because it is old and antiquated. The project ideabegan because it appears that
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