Walk me through how you would build a financial model to evaluate the feasibility of a new power generation project.
Why This Is Asked
Since no publicly documented interview questions exist for this role, this is grounded in First Gen's need for analysts who can build and interpret financial models for project evaluation, a core duty. It tests quantitative rigor and understanding of feasibility analysis.
General Approach
Outline a structured process: define the objective, list all inputs, build the model with clear assumptions, run sensitivity analysis, and present the output. Emphasize your methodical thinking even if you haven't done this exact task before.
Sample STAR Answer▾
Situation
During my internship at a renewable energy startup, I was tasked with helping to evaluate a potential solar farm.
Task
I needed to create a preliminary financial model to assess the project's viability, including IRR and payback period.
Action
I first gathered cost estimates for construction and operation, then projected revenue based on expected generation and feed-in tariff rates. Using Excel, I built a dynamic model with assumptions clearly labeled. I ran sensitivity analyses on key drivers like capacity factor and tariff changes.
Result
The model showed a positive IRR under base assumptions but highlighted risk if tariffs declined by more than 10%. The team used it to negotiate contract terms.
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