Parametric analysis of the financing cost in a building project

A parametric model is presented for the evaluation of financing cost in a construction project. The cost can be assessed at a very early stage of the project's design. The main parameters that are examined are the duration of the project, its pattern of cost and sales distribution, the cost of owner's equity capital and of external debt. Three financing options are examined and their effect on the financing cost is evaluated. The influence on the cost of financing of the main decision variables, such as the construction duration or the profit margin, is also examined.Financing, construction, construction project, loan, credit line, construction loan,