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Instructions - Page 1
Instructions - Page 2
Calculations
Diagram

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C:\Courses\Course Materials\2 Templates and Exercises Project Finance\Exercises\Simple Project F
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ercises\Simple Project Finance Model.xls

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Inputs

Life of Plant
Revenues
Expenses
Capital Expenditures

8
28,000
10,000
100,000

Depreciation Method
Tax Rate
Inflation Rate

Straight Line
0%
2%

Debt Financing Percent

Debt Term
Interest Rate

76%
7
5%
Formula

Year
Macro Economic Assumptions
Inflation Rate
Inflation Index
Interest Rate

Construction
0

Period

Input from Above

prior x (1+Inflation)
Input from Above

2.0%
1.00
5%

Sources and Uses During Construction

Uses
Construcion
Sources
Debt
Equity

Input
Debt Pct x Constr
Total Const - Debt

100,000.0
75,758.1
24,241.9

Debt Balance Schedule

Beginning Balance
Add: New Debt Issues
Less: Debt Repayments
Ending Balance
Interest Expense

Prior End Balance

Sources

75,758.1

Min, Beg Bal,COD/life

Beg + New - Repay
Beg Bal x Int Rate

75,758.1
-

Depreciation Expense
Plant Balance
Beginning Balance
Add: Capital Expenditures
Ending Balance
Depreciation Expense

Priod Ending Bal

Sources and Uses
Beg + Cap
Beg Bal/Life

Income Statement
Revenues
Less: Operating Expenses

base_rev x inf index

base_exp x inf index

100,000.0
100,000.0
-

EBITDA
Less: Depreciation
EBIT
Less: Interest Expense
EBT
Less: Taxes
Net Income

cap_exp/life
rev-exp-dep
beg debt x int rate
EBIT - Interest
EBT x tax rate
EBT - taxes

Cash Flow
Net Income
Add: Depreciation
Cash Flow from Operations
Less: Capital Expenditures
Cash Flow Before Financing
Plus: Debt Financing
Plus: Equity Financing
Less: Debt Repayment
Dividends
Equity Cash Flow
Free Cash Flow

Link to Inc St
Link to Inc St
ni + depreciation
Link to source & use
CF opr - cap exo
Link to source & use
Link to source & use
Link to Debt Schedule
CF b/4 +fin-mat
-Eq Fin + div
EBITDA - EBIT*t-cap exp

100,000
(100,000)
75,758
24,242
(24,242)
(100,000)

Annual DSCR
Cash for DSCR
Debt Service
Annual DSCR

Dividends + Int + Repay

interest + repayment
num/denom

Balance Sheet
Assets
Net Plant
Gross Plant
Accumulated Depreciation
Total Assets
Liabilities and Capital
Debt Balance
Equity Balance
Total Capital
Balance Sheet Check

Other Ratios
LLCR
Average Debt Life
Return on Average Equity

Link to Plt Balance

100,000

prior + cap exp

Gross - Dep

100,000

Link tp Dbt Schd

75,758
24,242
100,000

debt + equity
Assets = Capital

Outputs
life
base_rev
base_exp
cap_exp

Equity IRR
Project IRR
Average DSCR
Minimum DSCR

21.85%
11.08%
1.52
1.26

dep_meth
tax_rate
inflation
debt_pct
debt_term
int_rate
<--------------------------------------------------------------1

Operating Period ----------------------------------------------------->

2.0%
1.02
5%

2.0%
1.04
5%

2.0%
1.06
5%

2.0%
1.08
5%

2.0%
1.10
5%

75,758.1

64,935.5

54,112.9

43,290.3

32,467.7

21,645.2

10,822.6

10,822.58
64,935.5

10,822.58
54,112.9

10,822.58
43,290.3

10,822.58
32,467.7

10,822.58
21,645.2

10,822.58
10,822.6

10,822.58
-

3,787.9

3,246.8

2,705.6

2,164.5

1,623.4

1,082.3

541.1

100,000.0

100,000.0

100,000.0

100,000.0

100,000.0

100,000.0

100,000.0

100,000.0

100,000.0

100,000.0

100,000.0

100,000.0

100,000.0

100,000.0

100,000.0

100,000.0

12,500.0

12,500.0

12,500.0

12,500.0

12,500.0

12,500.0

12,500.0

12,500.0

28,560
10,200

29,131
10,404

29,714
10,612

30,308
10,824

30,914
11,041

31,533
11,262

32,163
11,487

32,806
11,717

2.0%
1.13
5%

2.0%
1.15
5%

2.0%
1.17
5%

18,360
12,500
5,860
3,788
2,072
2,072

18,727
12,500
6,227
3,247
2,980
2,980

19,102
12,500
6,602
2,706
3,896
3,896

19,484
12,500
6,984
2,165
4,819
4,819

19,873
12,500
7,373
1,623
5,750
5,750

20,271
12,500
7,771
1,082
6,689
6,689

20,676
12,500
8,176
541
7,635
7,635

21,090
12,500
8,590
8,590
8,590

2,072
12,500
14,572
14,572

2,980
12,500
15,480
15,480

3,896
12,500
16,396
16,396

4,819
12,500
17,319
17,319

5,750
12,500
18,250
18,250

6,689
12,500
19,189
19,189

7,635
12,500
20,135
20,135

8,590
12,500
21,090
21,090

10,823
3,750

10,823
4,658

10,823
5,574

10,823
6,497

10,823
7,427

10,823
8,366

10,823
9,313

21,090

3,750
18,360

4,658
18,727

5,574
19,102

6,497
19,484

7,427
19,873

8,366
20,271

9,313
20,676

21,090
21,090

18,360.00
14,610.49
1.26

18,727.20
14,069.36
1.33

19,101.74
13,528.23
1.41

19,483.78
12,987.10
1.50

19,873.45
12,445.97
1.60

20,270.92
11,904.84
1.70

20,676.34
11,363.71
1.82

21,089.87
-

100,000
12,500
87,500

100,000
25,000
75,000

100,000
37,500
62,500

100,000
50,000
50,000

100,000
62,500
37,500

100,000
75,000
25,000

100,000
87,500
12,500

100,000
100,000
-

64,935
22,565
87,500

54,113
20,887
75,000

43,290
19,210
62,500

32,468
17,532
50,000

21,645
15,855
37,500

10,823
14,177
25,000

12,500
12,500

Construction Contract
Construcion Exp
100,000.00
Cash
Cash
Macro Economic
Tax Rate
0%
Depreciation
St Line
Inflation
2%

Debt Contract
Debt Percent
Debt Term
Interest Rate

SPV: In Service Year

Tax and Economic Life

70%
7.00
5%
Sponsors
Equity Percent

1
8

Revenue Contract
Base Revenue
28,000
Escalation
2%
Services

Services
Cash
Expense Contract
Base Expenses
10,000
Escalation
2%

Sponsors
30%