Project Finance and Excel - Build Financial Models from Scratch - Sources and Uses of Funds During Construction

The video tutorial guides viewers through building a financial model from scratch, focusing on creating a construction sheet in Excel. It covers setting up and formatting the sheet, calculating construction costs, and building uses and sources tables. The tutorial also explains setting up a debt drawdown schedule, calculating various fees, and finalizing the debt schedule. The process involves using Excel formulas and understanding financial concepts like CapEx, debt, and interest rates.

What is the primary purpose of creating a separate construction sheet in the financial model?

• To organize construction-related financial data

• To track employee salaries

• To manage daily expenses

• To calculate tax liabilities

Why is it necessary to have a separate input assumptions sheet?

• To reduce the number of sheets in the model

• To centralize all input data for easy reference

• To track employee performance

• To manage daily expenses

Why is it important to adjust the timeline for construction costs in the financial model?

• To increase the overall project budget

• To simplify the model by using fewer sheets

• To ensure costs are spread evenly over the project duration

• To reduce the number of financial statements

What is the significance of the TBA sheet in managing construction costs?

• It forecasts future sales

• It tracks employee attendance

• It provides a timeline to manage costs

• It helps in calculating tax liabilities

How does the model ensure that construction costs are only accounted for during the active construction years?

• By using a fixed cost for all years

• By applying a formula that multiplies costs by a time-based factor

• By ignoring costs in the first year

• By spreading costs evenly across all years

What is the main goal of the uses and sources tables in the financial model?

• To track employee performance

• To manage inventory levels

• To balance the sources and uses of funds

• To calculate tax deductions

What is a significant challenge when calculating financing fees in the financial model?

• Unpredictable market conditions

• Inaccurate tax rates

• Lack of information on total debt and equity

• Too much data on employee salaries

What is the purpose of the debt drawdown schedule in the financial model?

• To calculate employee bonuses

• To track daily expenses

• To forecast future sales

• To manage the timing and amount of debt used

How is the engagement fee calculated in the financial model?

• As a percentage of employee salaries

• As a percentage of total project cost

• As a percentage of the remaining debt balance

• As a fixed amount per year

What is the role of the arrangement fee in the financial model?

• To calculate employee bonuses

• To cover daily operational costs

• To compensate for early project completion

• To account for the cost of arranging debt