Project Finance Model for Interviews from Hell and A-Z Model

Works through ideas on how to make a complete financial model from blank sheet with ideas on what to do in interview. Find file at www.edbodmer.com

[@1503sanity]

Most helpful resource out there. Singlehandedly prepared me for a job interview (and I got the job) from a non-existent baseline knowledge. Thank you so much, Ed!

[@BryceBarbier]

“I should say I’m drinking while I’m making this video it’s probably not a good idea” consider me subscribed….

[@MrOmertemiz]

I cannot understand how this video has been watched just 1.5k. This video lecture worth thousands of dollars.. thank you Ed Bodmer.

[@11dudekk22]

This is great. Easy to follow and understand. Thanks Ed.

[@rodrigocordova92]

Sir, as soon I heard you were having a drink, I immediately went for something to join you. Thank you and excellent video.

[@Difrisco1]

Many many thanks Ed, I studied your video for two days and it was SUPER helpful for a job interview. Great job!!!

[@pacifista00]

worth its weight in gold, thank you Ed

[@carlosantoniotabernilla]

This is awesome Ed!!!

[@shubhendukumar1972]

lots of knowledge with great fun. thanks

[@sl9081]

Wow this is super insightful, thank you for the Ed!!

[@FinancialModelDetective]

That’s extremely useful, clear and fun to watch. I have so many people to share this video with. Thanks Ed

[@zoubirkhadir]

Very Funy, and Very useful!

[@nickyasmr1601]

EDWARD BODMER, thank you!

[@andrewrzn2248]

Great video, thank you!

[@gonzalemoigne3391]

Thanks for the class!

[@rosecurran7050]

Bodmer for President! Yes!

[@giuandrei]

This is gold

[@alexandereuripidou5653]

Subscribed. Formulas and shortcuts great. Way laid out is great. The periods have been confusing me the whole time. Can see monthly at 1:28:10 then can see yearly at 1:27:07. I've done 240 months in my model but IRR shits itself. With interest in monthly model I did the (1+1%)^(1/12)-1 to get the monthly interest on ops and revs, does this sound right?

[@narminaskerzade3171]

Hello Ed! when you calculate the interest , shouldn't it be calculated differently for construction period since each period i s equal to a month while the interest rate is an annual rate? i am kind of confused here

[@lasse6758]

I believe your IDC is off? The annual 3% rate is applied monthly during construction

[@davidmuirhead8489]

gold

[@danielcachafeiro2590]

Hope somebody, can help me out. Why did we not consider debt repayment on profit and loss? Did we at any point consider the compounded interests? I see that the interests were calculated from an increasing draws, are they considering compounded interest from the IDC/circular reference? Thanks!

[@huiyichen3960]

could you share the excel after work? Edward? thanks

[@nicolaskyriakoglou735]

Hi Ed - When gearing is changed (i.e. 80%), after pressing the macro button in your model, DSCR at the end is 0.30 instead of FALSE. Any idea why this might be?

[@sophiax6788]

I had the same issue. It’s because of your dates. The last period should be in 2041, and delete the invalid ones beyond that

[@MrOmertemiz]

Hello sir, I hope you see this message, Today I watched this video again in for refresh, I have just realized one little thing, I might be confused maybe. As you know, you built your model monthly for construction period and yearly for operation period. When you were making calculation for interest, especially for the interest during construction, although interest input is 3% yearly, you took this interest rate as is. What I thought is, should not we use roughly 3%/12 when we are calculating interest during construction ? This change has huge impact on debt amount on cash flow and P&L, it makes equity IRR almost double when interest rate considered monthly. Thank you very much again for this amazing tutorial, I hope to see in person in the future.

[@Ozlmsnt]

Selam, IDC ne demek ve neden IDC depreciation ile IDC tutarları aynı oldu?

[@MrOmertemiz]

Selam, IDC interest during construction demek. IFRS ve USGAAP'e gore insaat suresinde ortaya cikan faiz aktiflestirilir, dolayisi ile ayni sabit kiymetlerdeki gibi amortismana tabidir. Sabit kiymetin amortisman suresi ile ayni surede amortisman ayrilir. Sanirim Turkiye VUK'a gore aktiflestirilmiyor, giderlestiriliyor. @@Ozlmsnt

[@JohnOwens0]

Also, the interest calculation uses the full rate during the construction period even though the construction period is modelled monthly. Should that formula for interest expense factor the number of months in the period for the calculation of interest which is rolling into IDC?

[@JohnOwens0]

The video says "gearing" is 80%. Should that say "leverage"? My understanding is that there's 80% of the cost available as debt, which would mean 80% of the capital structure is debt.... and then when i think of gearing I think of D/E (as opposed to D/(D+E)).

[@Ozlmsnt]

Everything is calculated in the capex period so we see the 0s, I couldnt catch the formulas in depth..

[@thomasjp95]

This is great. Some questions: 1) For a 1 hour PF modelling test isn't this method (of flags I mean) time consuming? Are there any alternatives? 2) When calculating the start/end period, why not have it exactly as 1 Jan - 31 Jan, 1st feb-28th feb and so on? 3) Do you have any 1 hour model exams? I checked your interviews from hell and it seems like most of them are longer 4) Shouldn't CFADS also be netted of capex?

[@CandlerCapital]

Also looking for shorter model exams. Can you lmk if you find anything?

[@givenchybw7636]

anyone found shorter model exams?@@CandlerCapital

[@damatter3314]

I have a 1 hour test coming up as well - wondering if you've found anything?

[@kfzar908]

Why no eomonth lol?