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Saturday, May 12

  1. page PROJECT FINANCE MODELS edited Home || Book || Featured PF Models || Featured Corp Models || Featured Acq Models || PF Exercises…

    Home || Book || Featured PF Models || Featured Corp Models || Featured Acq Models || PF Exercises || Corp Exercises || Download to Excel || Scenario Analysis || Tornado Diagrams || Monte Carlo || Flexible Graphs || Real Estate || Acq Exercises || Macros || Reading PDF || Waterfall Graphs || Circular Ref || Depreciation || Financial Ratio || Value Driver || Renewable || Testimony || Pricing Case Studies ||
    Much Better Examples are at Featured Modelsplease goto https://edbodmer.com for a much improved library of models, theory and databases
    Unique Aspects of Project Finance Models on Website
    After almost twenty years of teaching project finance modeling I have developed unique techniques to resolve the most difficult aspects of structuring project finance models related to debt sculpting with taxes, funding of capital expenditures and interest during construction, and structuring the DSRA account (people who have worked on project finance models know what these things mean). Project finance models on the website illustrate how the unique features can be incorporated in models.
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    9:54 am

Monday, April 23

  1. page Electricity Marginal Cost and Economic Analysis edited Subject This website is now obsolete because of being extinguished by horrible wikispaces. Ple…
    Subject
    This website is now obsolete because of being extinguished by horrible wikispaces. Please go to http://edbodmer.com for a much improved website.
    Subject

    Excel File
    Video Link
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    6:51 am
  2. page Levelised Cost of Energy and Carrying Charges edited This website is now obsolete because of being extinguished by horrible wikispaces. Please go to …

    This website is now obsolete because of being extinguished by horrible wikispaces. Please go to http://edbodmer.com for a much improved website.

    This page addresses LCOE -- the levelised cost of energy and the associated carrying charge rates. LCOE and carrying charge rates are evaluated with through demonstrating how to find data, how to measure and put together all of the factors that drive the carrying charge, and how to use carrying charge rates in economic analysis. For the electricity industry and other capital intensive industries different investment alternatives that have alternative operating lives, capital costs, variable costs, fixed costs and risks the LCOE can be an effective way effectively summarise different alternatives. More importantly, establishing carrying charge rates can make the analysis of different alternatives much more effective. The first lesson below walks through different components of the carrying charge that include evaluating project life, inflation, income taxes, deferred taxes, replacement capital costs, debt financing and maintaining a constant capital structure. The carrying charge converts a one-time cost (sometimes referred to as overnight cost) into an annual cost. In addition to carrying charges, comparing investments must evaluate the fixed and variable costs that for electricity include fuel cost. The second lesson set on this page describes how make various calculations that establish the fixed costs and the variable costs that are combined with the capital cost to establish the overall levelised cost.
    This page will eventually include a variety of issues involving electricity analysis that includes among other things, coming up with appropriate incentives in different contracts (PPA, EPC, O&M etc) as well as selected issues surrounding distribution, transmission and generation. A subject that I have also include on the page is measuring the LCOE for power projects. As I have made a few videos on LCOE this is the first subject on the page.
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    6:51 am
  3. page cost of capital and wacc edited This website is now obsolete because of being extinguished by horrible wikispaces. Please go to …

    This website is now obsolete because of being extinguished by horrible wikispaces. Please go to http://edbodmer.com for a much improved website.
    ||Home|| Book || Featured PF Models || Featured Corp Models || Featured Acq Models || PF Exercises || Corp Exercises || Download to Excel || Scenario Analysis || Tornado Diagrams || Monte Carlo || Flexible Graphs || Real Estate || Acq Exercises || Macros || Reading PDF || Waterfall Graphs || Circular Ref || Depreciation || Financial Ratio || Value Driver || Renewable || Testimony || Pricing Case Studies ||
    After you are finished with university, it is very doubtful that you keep much interst in issues related to the cost of capital. Your boss may give you a required IRR. Your investment bank may have standard WACC that they apply. You may be given a CAPM framework to plug in. You may get some contry risk premiums from a horrible horrible website that lists them. This is how I my life worked after university a very long time ago and I doubt things have changed much. But the older I get the more I keep coming back to nagging cost of capital issues. That is why have spent time creating this page and documenting different alternatives to the cost of capital.
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    6:50 am
  4. page User Defined Functions edited This website is now obsolete because of being extinguished by horrible wikispaces. Please go to …

    This website is now obsolete because of being extinguished by horrible wikispaces. Please go to http://edbodmer.com for a much improved website.

    I made this page that describes certain UDF functions that can be helpful in different kinds of financial models. If first demonstrate some relatively simple user-defined functions including an XMIRR function and a PAYBACK function. These functions illustrate the fundamental aspects of user defined functions (UDF's). The second section addresses how to create a function that accomplishes interpolation in excel, a major deficiency of the program. After documenting the INTERPOLATE_LOOKUP function, establishing a dynamic goal seek function is documented.
    The goal seek is a wonderful tool in excel. But sometimes you may want to have the goal seek work on a dynamic basis, meaning that you do NOT want to go to the data menu and then hit the what if analysis and enter the target cell etc. A dynamic goal seek function is where you make a function that automatically changes to an output variable that comes from a goal seek when you change one of the inputs. The process of making a dynamic goal seek is similar to resolving a circular reference with a user-defined function. The similarity is that you need to re-program equations in excel and that you must do this with a user-defined function that has so kind of iteration loop. A dynamic goal seek can be useful in project finance models when you have a an equal installment or a level repayment. If you later want to operate another goal seek that derives prices or capital expenditures this can be very useful. For corporate finance, the dynamic goal seek could be useful in deriving the equity capital injection to reach a target capital structure so that you do not have to run the solver. In addition, the when you are backing out the cost of capital and the terminal value is a function of the cost of capital itself this technique can be very useful.
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    6:49 am
  5. page Circular References in Corporate Finance and Project Finance edited This website is now obsolete because of being extinguished by horrible wikispaces. Please go to …

    This website is now obsolete because of being extinguished by horrible wikispaces. Please go to http://edbodmer.com for a much improved website.
    ||Home|| Book || Featured PF Models || Featured Corp Models || Featured Acq Models || PF Exercises || Corp Exercises || Download to Excel || Scenario Analysis || Tornado Diagrams || Monte Carlo || Flexible Graphs || Real Estate || Acq Exercises || Macros || Reading PDF || Waterfall Graphs || Circular Ref || Depreciation || Financial Ratio || Value Driver || Renewable || Testimony || Pricing Case Studies ||
    This circular reference page demonstrates how to resolve circular references through using user-defined functions rather than non-transparent and circular resolution clumsy copy and past macros, goal seeks or solver methods. For a series of circular reference problems, the benefits and problems of various different circular reference resolution methods are illustrated beginning with the iteration button, moving to the goal seek method and finally to two different circular reference methods that use functions.
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    6:49 am
  6. page slides edited Slides, Case Studies and Reference Materials This website is now obsolete because of being exti…

    Slides, Case Studies and Reference Materials
    This website is now obsolete because of being extinguished by horrible wikispaces. Please go to http://edbodmer.com for a much improved website.
    This page includes some of my project finance, corporate and energy analysis slides that I use for various courses. I generally spend more time on financial models to demonstrate concepts and flip charts to discuss concepts. I have make power point slides for financial modelling and energy, but many of the presentations do not follow the FAST religion. Specifically, the slides do not S--structuring concepts and sometime the concepts are not presented in a transparent method. Also if the A means appropriate, sometimes the slides have too much detail. But now I am trying to put together more structured slides. To practice I have recorded videos associated with the slides.
    Project Finance Lecture:
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    6:48 am
  7. page Merchant Electricity Analysis edited This website is now obsolete because of being extinguished by horrible wikispaces. Please go to …

    This website is now obsolete because of being extinguished by horrible wikispaces. Please go to http://edbodmer.com for a much improved website.
    ||Home|| Book || Featured PF Models || Featured Corp Models || Featured Acq Models || PF Exercises || Corp Exercises || Download to Excel || Scenario Analysis || Tornado Diagrams || Monte Carlo || Flexible Graphs || Real Estate || Acq Exercises || Macros || Reading PDF || Waterfall Graphs || Circular Ref || Depreciation || Financial Ratio || Value Driver || Renewable || Testimony || Pricing Case Studies ||
    Acquiring Data on Merchant Electricity and Gas Prices from Around the World
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    6:47 am
  8. page Tornado Diagrams edited Tornado Diagram Templates and Video Courses This website is now obsolete because of being extingu…
    Tornado Diagram Templates and Video Courses
    This website is now obsolete because of being extinguished by horrible wikispaces. Please go to http://edbodmer.com for a much improved website.
    This page explains how to make different presentations of scenario and sensitivity analysis using tornado diagrams, spider diagrams and other tools. The process involves using a combination of data tables and the index function. The process is helped with the TRANSPOSE function. A tornado diagram can be a good risk tool because it shows the importance of different variables and it demonstrates whether there is more downside or upside risk. A spider diagram can be used when sensitivity variables are expressed as percentages (e.g.120% or 90%). Then a two way data table can be used with the percentages and the various different input variables. In creating a tornado diagram you need add a whole bunch of scenarios where each sensitivity has only variables that differ from the base case.
    The video below illustrates the process
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    6:46 am

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