Next, let's add cash interest into the model during the construction phase. And we're gonna start with the soft cost calculation.

So let's go ahead and calculate the cash capitalized interest during the first year of the construction phase. We're gonna take these numbers from our finance sheet and we're gonna start with the interest on our revolving credit facility, and we're gonna add to it the interest for the same year on our syndicated loan.

And that gives us 23.5. Now we have to make sure that this number here is positive. So let's go ahead and change sign by adding a minus sign at the beginning of the formula. And we can copy this to the right. Now this cash interest has to be funded. So the next step is to add this line into our uses of funds table at the very top.

So for now, I'm gonna simply link our interest during construction to the calculation below.

And when I do that, what happens is I get a warning because I'm creating a circular reference. So let's take a look at why. Well, the interest during the construction has to be funded, which means that's gonna increase our total uses of funds, which in turn is gonna impact the amount of the syndicated loan that is gonna be drawn down during that year. And that in turn is gonna impact the amount of interest that has to be paid. So how do we get around the circular reference? But the first thing is to use an if statement where we say, if our circular switch, which we have it in the info tab, it's equal to one, then we want to go ahead and bring this interest amount up to our uses of funds.

Otherwise put a 0 instead.

So we're still getting a 0. Let me copy this. Four minutes to the right, and we're still getting a 0 because right now Excel is unable to solve for an iterative process. So what we need to do is we need to enable iterations. So let's go to Excel options, press alt ft, go to the formulas tab and check the box that says Enable iterative calculation. Let's press okay. And now Excel should be able to solve for this circular reference. So now we see that our interest is flowing through our users of funds table. Now let's go to our balance sheet To make sure that our model is still balanced. If we go down to our check, we can see that our model is balanced during the construction phase after we've added the cash interest.