COREFAIT EU Funding Gap Model Discount
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The method used to consider net revenue when calculating eligible expenditure for the contribution from the Funds is the method of the funding-gap defined as the difference between discounted investment cost and discounted net revenue. This method is used for two main reasons: first, to ensure that under certain circumstances, projects have enough resources to be implemented without being over-financed; and second, by extension, to ensure a minimum level of project profitability so that beneficiaries can bear the cost of capital needed in addition to public support.