Project finance focuses on funding projects based on their own cash flow, rather than the borrower's. The success of the investment depends on the project's success. Special purpose vehicles are often created for projects, which may not have strong financial statements. Key to analyzing investment projects is accurately forecasting cash flows and assessing project risks. Methods like NPV, IRR, and BCR are used to evaluate profitability. Project sustainability criteria, like liquidity testing and risk assessment, are also important. Risks that can't be mitigated are factored into the project's cost of capital. Projects are funded only if they meet assessment criteria, which may include environmental and social responsibility factors.