This page describes some ideas of how I suggest you prepare for nightmare project finance interview exams. I get very irritated when people ask me about some relatively complex modelling techniques that could involve re-financing, complex debt sizing, holding company analysis, monthly to annual cash flows, merchant cash flows, tax equity analysis and other issues. But then when they share the screen and show me their expertise in making a model they do not compute sums; they did not put in the units; they do not put inputs in a structured manner in an InputC page; they make the time lines with horrible disgusting long formulas; they do not structure the model with operations on the top and financing after project IRR is computed; they think their method of model presentation that wastes time is good because it conforms to some PE firm; they compute the financial statements way too early before computing project and equity cash flows; they do not use the NPV formula in computing debt size.
The argument on this page is that if you are preparing for an interview, the first step is to be able to quickly and efficiently complete a model with annual data and without any circular references without any scenarios without any adjustments for periodic payments and other complexities. I suggest that you should practice the first case many times until you become very comfortable with the structure, timelines and the model equations. Once you complete the basic case you can move to a more complex case that includes INDEX, LOOKUP and SUMIF to incorporate scenarios; to incorporate monthly variation and to model semi-annual repayments in the context of monthly flows. In the first section of this page I present a simple model that you should practice and should complete very quickly. If you can compute the basic model quickly then you can spend more time on the complex items.
This page also moves to some more complex after emphasizing the basic modelling. Some people would like guide through project finance. At the bottom of the page I have included a file with links to a whole bunch of videos (not youtube videos) where I have recorded class sessions that work through many project finance modelling issues. There is a video associated with each page that shows you how to work through basic and then complex issues with a model.
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Step 1: Basic Model
The file for the first part is attached to the button below. This is the case you should be able to finish quickly. If you cannot complete this efficiently, try it again and again. Please do not be aggorant and think you do not have to do this. Please make the model look professional and include units; sum columns; header rows; nice time lines etc. I beg you to be very proficient at this before you try other things.
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Step 2: Monthly Model with INDEX, LOOKUP and SUMIF
The second file and video describe more complex issues with modelling including monthly construction, interest during construction and using InputS. If you can become comfortable with this model you are on the way to being able to complete more complex modelling issues.
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Excel File with Monthly Inputs that is Used for Modelling with INDEX, LOOKUP and SUMIF Functions
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Surinam Wind Model with Basic Debt, Scenario Analysis, Monthly Construction and Valuation
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Excel File with Surinam Wind Case with Scenario Analysis, Monthly Construction and Valuation
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Case File with Surinam Wind Case with Scenario Analysis, Monthly Construction and Valuation
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Hotel Model with Sculpted Debt, Re-finaning Analysis, and Monthly Construction
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Excel File with Hospital Case that includes Monthly Construction and Multiple Re-financings
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Files from Modelling Classes
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Project Finance Example Used in Course with Modelling Principles and LCOE of Battery Plus Solar
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Comprehensive Course on Project Finance Model from Free Saturday Sessions
The file below has a guide through project finance modelling beginning with a basic model and moving to more advanced issues that include detailed time lines, circular references, sculpting issues and a number of excel techniques. There are a number of pages and for each page you can click on a link that takes you to an MP4 video made from our teams sessions. An example of the links is shown in the screenshot below. There is a video associated with each page that shows you how to work through basic and then complex issues with a model.
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The file attached to the button below is associated with the video I made which is very long and works through review of an existing attempt. The review and the model are comprehensive with flexible time lines, reconciliation of LCOE and operating data, income taxes, circular references with a copy block and a paste block, a debt service reserve account and cash sweeps.
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Comprehensive Model in Two Parts with Valuation, Re-financing, Detailed Solar Analysis and Flexible Timing
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The model below and the case study was used in a session we had that worked through interview cases. The inverview cases have been re-formated and the case we used is shown below. The principal objective of the case was to compute the value a private equity company would be willing to pay for a project with a target IRR of 8%. As with many cases, the writing of the case has some problems (in particular the crazy debt assomption of 95% with an interest rate of 2%). The writing of the case is attached to the button below.
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Case Study Write-up for Detailed Solar Project with Many Details and U.S. tax Treadment of Renewable
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The file attached to the button below is the excel file associated with the case. Completing this case would have taken me about three hours. The case was created with the generic macros file that you can access from the home page (do not to press the unblock on the properties)
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Part One of Case Study with Valuation, Detailed Solar and U.S. Tax Issues Extended for Re-financing
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The button below is the updated file that I developed. You can compare this to the file that Hedieh created with AI. The final file we created includes some things that were not in the case including sales with different rates and including re-financing. The final file is attached to the blue button below.
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Case Study Write-up for Detailed Solar Project with Many Details and U.S. tax Treadment of Renewable
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Using AI to Complete Model
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The file and the video below show how Hedieh has used AI to solve the case. The first file below is the prompts that Hedieh used combined with the PDF file attached to the button above. The first blue button is the prompts Hedieh used in a word document. The second blue button is the result of the prompts.
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Hedieh’s Prompts
MASTER MODELING STANDARDS PROMPT
Build this project finance model strictly following FAST modeling standards and the structural conventions below. These rules override any default behavior and apply to every sheet in the workbook.
File format Deliver a single .xlsm file.
Sheet architecture Separate all content into three layers with no exceptions: INPUTS (hard-coded assumptions only), CALCULATIONS (formulas only), and OUTPUTS (summaries and dashboards, no new calculations). Every hard-coded number that drives the model must live in an input sheet. If a number appears in a formula on a calculation sheet, it must reference an input cell ,never be written directly into the formula.
Sheet ordering and tab colors Input sheets: yellow tabs. Calculation sheets: no tab color (white/default). Output sheets: use a distinct tab color. Place a Dashboard or Summary sheet as the first visible tab. Place a Change log as the last tab.
Standard header block (rows 1-5 on every calculation sheet) Row 1: Sheet name and model name. Row 2: Period start dates , Row 3: Period end dates. Row 4: Period label (e.g. semi-annual counter). Row 5: Financial year number. Row 5: Column role labels (Constant | Unit | Total | then period columns left to right). Every calculation sheet must have this header, frozen at row 5.
FAST color conventions – apply these exactly and consistently Blue font: hard-coded values and flags that appear on calculation sheets (inputs placed directly on a calc sheet for convenience — should be minimal). Black font: all formula cells and labels. Red font: cross-sheet links (cells whose formula pulls a value from a different sheet). Yellow cell background: input assumption cells on input sheets. No other color conventions unless documented in a Guide sheet added to the workbook.
Formula discipline One formula per row, consistent across all time-period columns. Avoid deeply nested IF chains. If a formula requires more than three nested IFs, break the logic into helper rows. Every formula must be traceable: a reviewer clicking through precedents should reach a source input within five steps.
Inputs sheet (InpC) structure InpC scenario analysis structure
The InpC sheet must be structured to support multiple named scenarios in a single sheet, following this column layout exactly:
Fixed columns (always present, always in this order):
Column A: Row label / assumption name.
Column B: Constant — the value used in the active scenario (this is the cell all calculation sheets reference via local input rows).
Column C: Unit (e.g. USD 000, %, years, MWh/year).
Column D: Source (document or basis for the assumption, e.g. “EPC contract”, “Energy yield study P50”, “Term sheet dated Jan 2026”).
Scenario columns (starting from Column E onwards):
Each scenario occupies one column with its name as the header (e.g. Base Case, Downside, Stress, P90 Debt Case). Every input row must have a value filled in for every scenario column , no blanks.
Active scenario selector:
Place a single control cell at the very top of InpC (e.g. cell B2) where the user types or selects the active scenario name. The Constant column (Column B) must use a formula for every input row that reads this control cell and returns the corresponding scenario column value using INDEX/MATCH or a similar lookup. This means changing one cell switches the entire model to a different scenario instantly.
Section headers:
Group inputs into clearly labelled sections with a shaded header row, for example: Timeline & Construction, CAPEX, Operating Costs, Revenue & Tariff, Debt & Financing, Tax & Accounting, Returns & Thresholds. Each section header row spans all columns and uses a distinct background color to separate sections visually.
Tracking differences across scenarios:
Include a column to the right of all scenario columns that flags rows where scenario values differ from the Base Case (e.g. a simple formula: if this row’s value differs across scenarios, show “varies”, otherwise leave blank). This gives a reviewer an instant summary of what changes between scenarios.
No calculations in InpC:
InpC contains only hard-coded values in the scenario columns and lookup formulas in the Constant column. No arithmetic, no intermediate calculations. If a derived input is needed (e.g. total CAPEX as a sum of components), calculate it on a dedicated calculation sheet and bring the result back as a local input row on that sheet — do not calculate it inside InpC.
Error check sheet Include a dedicated Check sheet. It must verify at minimum: Balance Sheet balances (Assets = Liabilities + Equity), Sources and Uses balance, DSRA funding level matches covenant, debt repayment schedule nets to zero by loan maturity. The Check sheet must aggregate all checks into a single cell showing total errors. A clean model shows zero.
No hard-coded numbers in formulas This is an absolute rule. Constants such as tax rates, interest rates, CAPEX, degradation, availability, and all financial parameters must be defined as named input cells and referenced in formulas. The only numbers permitted directly inside a formula are 0, 1, and mathematical constants.
Circular references If the model requires iterative calculation (e.g. for debt sizing, DSRA, or IDC), include a dedicated Macro sheet that controls the iteration. Document the circular logic on the Solve sheet.
Financial statements Produce all three statements: Income Statement, Balance Sheet, and Cash Flow Statement. They must reconcile: net income flows into retained earnings on the Balance Sheet, and the cash movement on the Cash Flow Statement must equal the change in the cash line on the Balance Sheet. Show this reconciliation explicitly on the Check sheet.
Sensitivity analysis Include a sensitivity table in InpC that tests at minimum: revenue/tariff, CAPEX, construction delay, and the debt interest rate. Use Excel data tables (not hard-coded results) so the table updates automatically when assumptions change.
Documentation Every sheet must have a comment in cell A1 describing its purpose and what it feeds into or depends on. The Change log must record the model version, date, author, and a description of every material change.
Local input rows on calculation sheets
When a calculation sheet needs a value from an input sheet, never reference the input sheet directly inside a calculation formula. Instead, follow this two-step pattern on every calculation sheet:
Step 1 – Local input row: At the top of the relevant section, create a dedicated row that pulls the value from the input sheet. This row contains only a direct reference to the input cell, nothing else. Format it in red font (cross-sheet link convention). Label it clearly, e.g. “Annual OPEX [from InpC]”.
Step 2 – Calculation row: The formula row immediately below (or nearby) references only the local input row just defined, not the input sheet. For example: Periodic OPEX = Local_Annual_OPEX_row * Period_Payment_Flag.
This rule applies to every input value used in a calculation sheet without exception — costs, tariff, interest rate, tax rate, degradation, availability, escalation indices, and all others. No formula on a calculation sheet may contain a cross-sheet reference to an input sheet and a mathematical operation in the same cell. Cross-sheet links and calculations must always be in separate rows.
The result is that every calculation sheet is fully self-contained: a reviewer can audit any formula by looking only at that sheet, and every assumption feeding into a calculation is visible as a labeled row directly above where it is used.