How it works
Write the cash list first. Then decide what the page is measuring.
- Open with one sentence: this is today's cost of the stream.
- Show year-one cash next to a later year.
- Name the rate and why you picked it.
- Show one nearby rate so no one thinks the rank is magic.
- Close with what NPV cannot score.
Formula in words. Tell it in words: later cash shrinks. Add the shrunk years. Compare those totals.
| Input | Meaning |
|---|---|
| Plain opener | Today's dollars, not a slogan |
| Year table | Cash the client can audit |
| Visible rate | The price of waiting |
| Limit line | What the number does not decide |
Worked example
Here is a teaching sample. It is not customer data and not a result from a live client.
Lease A start rent$44,000
Lease B start rent$40,920
Discount rate8%
Sample NPV A$371,068
| Metric | Lease A | Lease B |
|---|---|---|
| Start rent | $44,000 | $40,920 |
| Year-1 extras | $7,600 | $8,132 |
| Year-1 credit | $20,000 | $11,000 |
| Sample NPV | $371,068 | $360,161 |
| Year | Rent | Extras | Credit | Cash out | Value today |
|---|---|---|---|---|---|
| Year 1 | $44,000 | $7,600 | $20,000 | $31,600 | $29,259 |
| Year 2 | $45,320 | $7,828 | $0 | $53,148 | $45,566 |
| Year 3 | $46,680 | $8,063 | $0 | $54,743 | $43,457 |
| Year 4 | $48,080 | $8,305 | $0 | $56,385 | $41,445 |
| Year 5 | $49,522 | $8,554 | $0 | $58,076 | $39,526 |
| Year 6 | $51,008 | $8,811 | $0 | $59,819 | $37,696 |
| Year 7 | $52,538 | $9,075 | $0 | $61,613 | $35,951 |
| Year 8 | $54,114 | $9,347 | $0 | $63,461 | $34,286 |
| Year 9 | $55,737 | $9,627 | $0 | $65,364 | $32,698 |
| Year 10 | $57,409 | $9,916 | $0 | $67,325 | $31,185 |
| Sample NPV | — | — | — | — | $371,068 |
How to read the sample
Sample NPV for Client-story sample is about $371,068. A second path lands near $360,161. That gap is a talking point, not a promise.
Year notes for Client-story sample
- Year 1 of Client-story sample has rent of $44,000.
- Shared building cost is $7,600.
- A credit of $20,000 lowers the cash you pay that year.
- Cash out this year is about $31,600. The big credit is the talking point.
- Later cash gets a shrink for time. At 8 percent, year 1 is worth about $29,259 today.
- Next, year 2 rent is $45,320.
- CAM, which is a shared building cost, is $7,828.
- There is no credit in this year.
- You pay about $53,148 this year after extras and credits. Year two looks plain after the credit.
- Time shrinks later cash. At 8 percent, year 2 is worth about $45,566 today.
- Then year 3 rent is $46,680.
- Extras for the building come to $8,063.
- Credits skip this year.
- The net cash this year is about $54,743. The step starts to show.
- Waiting has a price. At 8 percent, year 3 is worth about $43,457 today.
- After that, year 4 rent is $48,080.
- The shared building cost this time is $8,305.
- No extra credit shows up this year.
- Cash out this year is about $56,385. Later cash is the part people forget.
- Later cash gets a shrink for time. At 8 percent, year 4 is worth about $41,445 today.
- In year 5 of Client-story sample, rent is $49,522.
- Shared building cost is $8,554.
- There is no credit in this year.
- You pay about $58,076 this year after extras and credits. The last year still belongs in the client story.
- Time shrinks later cash. At 8 percent, year 5 is worth about $39,526 today.
- Year 6 of Client-story sample has rent of $51,008.
- CAM, which is a shared building cost, is $8,811.
- Credits skip this year.
- The net cash this year is about $59,819. Keep this later year in the sum for the sample.
- Waiting has a price. At 8 percent, year 6 is worth about $37,696 today.
- Next, year 7 rent is $52,538.
- Extras for the building come to $9,075.
- No extra credit shows up this year.
- Cash out this year is about $61,613. The row still belongs in the sum for the long path.
- Later cash gets a shrink for time. At 8 percent, year 7 is worth about $35,951 today.
- Then year 8 rent is $54,114.
- The shared building cost this time is $9,347.
- There is no credit in this year.
- You pay about $63,461 this year after extras and credits. Keep this later year in the sum for the long path.
- Time shrinks later cash. At 8 percent, year 8 is worth about $34,286 today.
- After that, year 9 rent is $55,737.
- Shared building cost is $9,627.
- Credits skip this year.
- The net cash this year is about $65,364. The row still belongs in the sum for the long path.
- Waiting has a price. At 8 percent, year 9 is worth about $32,698 today.
- In year 10 of Client-story sample, rent is $57,409.
- CAM, which is a shared building cost, is $9,916.
- No extra credit shows up this year.
- Cash out this year is about $67,325. Keep this later year in the sum for the long path.
- Later cash gets a shrink for time. At 8 percent, year 10 is worth about $31,185 today.
Add those year values. The sample NPV for Client-story sample is about $371,068. This is a teaching sample, not a client result.
Trusted sources
These are public references. They are not endorsements and not client results.