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One of the main factors which directly affect your business model is to select correct financial parameters. There are 4 main parameters in financial models: Pay-back period, NPV, IRR, and the break-even point of the project. They become a world’s standard now that are the same for every kind of business all over the world now. If you calculate these numbers correctly, your financial model and future business will most probably not go wrong. It is not only critical to evaluate the project from the investor’s side, but also important for the banks to take decisions about giving the loan to project or not.
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