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List 3 reasons to consider the use of debt in financing a development project.

  1. List 3 reasons to consider the use of debt in financing a development project.
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Answer #1

Debt Financing for development project should be used to following reasons:

1. Debt is the least expensive source of long-term financing.
2. It gives you flexibility in your capital structure.
3. The interest on the debt provides the company with the benefit of tax saving.
4. There is no interference in business operations by the lenders because they are not entitled to vote.

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