It is now time to see together a practical application of, the construction of the budget during construction. It is a simplified example, that you can make more complex. But at the end of the day we are using an example that is simplified without losing rigor, or in terms of what happens in reality. So, let's assume, first of all, that we have to finance project whose total cost is 4,000. And lets assume that the VAT on this product is set at 20%. We can also assume that this product is financed with equal proportion of debt and equity, so 50% debt and 50% equity. And that, respectively on, the base facility and VAT facility. We pay, a fixed rate of 5% of the base facility and 4% on the VAT facility. These are fixed rates because these rates have been swapped against the original floating rate. Based on these kinds of elements, lets assume that, the construction phase goes on from time zero to time three. So, for three years of, the first part of the life of the project. So, lets assume that we start from zero. And we run the construction phase, in year number one, year number two, year number three. We can also add a final column, with the total that will enable us to understand the total amount of fence, that will be burned by the project during the construction phase. Second element, when you set up the budget of the construction phase, you must also decide, how much will be paid for the construction cost throughout the first part of the life of the project. So we can assume for example, that the work-in Payment percentage. That will be paid, respectively, in year zero, one, two, and three. Will be 20% at the end of year zero, 20% at the end of year one, 30% of the end of year two, and 30% at the end of year three. As you can understand, the total, sum of these percentage will return, at the end of year three. The total 100%. Now, we are ready to start the simulation of the budget for the construction phase. First of all, we can calculate, given the value of the project. And given, the percentage of work in progress payment. We can calculate the work in project in terms of US dollars. Applying the percentages to the original value of 4000. So we will have 800, 20% times 4000 at the end of year zero. Another 800 at the end of year one. 1200 at the end of year two. And an additional 1200, at the end of year three. You can understand that the total amount that will be accrued at the end of year three, will return exactly, the total value of the project, which is 4,000. The second element of the amount of money that the project burns, the VAT in countries where VAT is in place. VAT will be, calculated using 20%, on the amounts that we have to pay, for the construction costs, because this VAT will be invoiced by the contractor to the SPV. So, we calculate 20% on these, four amounts. So, 160, year number zero. 160, year number one, 240 and 240 for year, two and three. For a total VAT amount of 800, which is, again, 20% of 4,000. Now, let's move a for a moment on the liability side. We know, that, typically, equity. On one side. And, debt on the other side. We call it base facility, as we have seen. Are contributed on a pro-rata basis, as long as the construction goes on. And, in this example we have agreed with creditors that the contribution will be 50% and 50%. So, we take the amount of work in progress, and we split it in two parts. So for example, in year, zero, we will finance 400, with equity contribution. And 400 in terms of base facility. The same holds true, in year number one. In year, number two. We will split 1200 in two parts. So, 600 equity, and 600 base facility. And the same is true, for year three. You can understand, that at the end of the entry, we will have a total contribution of 2,000. In terms of equity and 2,000 in terms of debt. Now we must also, keeping in mind that, as long as you use the base facility during the construction phase. You have also, to pay, the VAT during construction. And we know, that the special VAT debt. Has been provided by, the contractors and the financiers, in order to finance the VAT. So, VAT is, reported in, the upper part of our exhibit, and we know that VAT adapt to finance is exactly, 100%. So we can easily copy, the same values from year zero to year three. So 160, year zero, and 160 year one, 240 year two, 240 year three for a total amount of, 800. You can understand that, from this point of view, our, asset and liabilities, still matches for an amount of 4,800. The, complication, if we can, call it complication. Is the fact that, if you use that during the construction phase, you have to pay interest. And, we also, know that, the base facility pays an interest of 5% and the VAT pays an interest of 4%. We also know, from mathematical finance that, if we are in a multi-period setting, compound capitalization, must be used in order to calculate the value of accrued interest during construction. The value of accrued interest during construction will have two effects. On one side, it will increase the liability side. And, on the asset side, we will have, a capitalization of interest on, the asset side. So, we can add in our exercise on the asset side, interest, accrued during construction, and, on the liability side, the same interest. Accrued, during construction. I will show you now, how we can, basically calculate the value of interest. You can repeat the same exercise using the order facility. For example, the base facility. I will make the calculation for, the base facility. You have all the elements to do it, because we know that the base facility has been used 400, 400, 600, 600 in year zero, one, two and three. What we have to do is simply to capitalize this values, until the end of the construction phase, using the. Terminal value. The future value formula, of mathematical finance. So, we can calculate the accrued interest taking, the users offence, 400, 400, 600, 600 and then capitalizing them. Using the. Capitalization factors. 1 plus interest rate 5%. 1 plus 0.05. 1.0.05. And 1.0.05, and bringing this value, until the end of the construction phase. So first structure will be capitalized for three years. The second structure will be capitalized for two years. The third structure will be capitalized, for one year, and the final one will not be capitalized for the simple reason that is, being paid exactly at the end of year three. If we calculate, the total amount of this value, we can get, the total value, of this kind of, loan. That amounts to, 2,134.05. You can understand that this amount, [SOUND] is the split between the original amount of 2,000, and an additional 134.05 accrued interest. If we repeated the same exercise for the VAT loan. We can get the final value for the VAT interest calculated exactly, in a similar fashion, and this value is 42.63. Overall, the total accrued interest during construction, amounts to 176.68. We can now return to, our, original budget and we can basically insert, the accrued interest during construction on the asset side, 176.68 and we can, capitalize the interest on the liabilities side, 176.68. [SOUND] And again, you can understand that the-