How it works
Write the cash list first. Then decide what the page is measuring.
- Start with identity: building, size, dates, term.
- Add the money lines: rent, extras, credits.
- Add the risk lines: caps, audits, bumps.
- Add the option lines: renew, terminate, expand.
- Add the rate you will use.
Formula in words. Complete compare = identity + money + risk + options + visible rate.
| Input | Meaning |
|---|---|
| Identity | Size, dates, term |
| Money | Rent, extras, credits |
| Risk | Caps, bumps, true-ups |
| Options | Renew, exit, expand |
| Rate | Discount rate |
Worked example
Here is a teaching sample. It is not customer data and not a result from a live client.
Lease A start rent$43,000
Lease B start rent$39,990
Discount rate8%
Sample NPV A$376,867
| Metric | Lease A | Lease B |
|---|---|---|
| Start rent | $43,000 | $39,990 |
| Year-1 extras | $9,000 | $9,630 |
| Year-1 credit | $17,000 | $9,350 |
| Sample NPV | $376,867 | $365,981 |
| Year | Rent | Extras | Credit | Cash out | Value today |
|---|---|---|---|---|---|
| Year 1 | $43,000 | $9,000 | $17,000 | $35,000 | $32,407 |
| Year 2 | $44,290 | $9,270 | $0 | $53,560 | $45,919 |
| Year 3 | $45,619 | $9,548 | $0 | $55,167 | $43,793 |
| Year 4 | $46,987 | $9,835 | $0 | $56,822 | $41,766 |
| Year 5 | $48,397 | $10,130 | $0 | $58,527 | $39,832 |
| Year 6 | $49,849 | $10,434 | $0 | $60,283 | $37,989 |
| Year 7 | $51,344 | $10,747 | $0 | $62,091 | $36,230 |
| Year 8 | $52,884 | $11,069 | $0 | $63,953 | $34,552 |
| Year 9 | $54,471 | $11,401 | $0 | $65,872 | $32,952 |
| Year 10 | $56,105 | $11,743 | $0 | $67,848 | $31,427 |
| Sample NPV | — | — | — | — | $376,867 |
How to read the sample
Sample NPV for Checklist sample is about $376,867. A second path lands near $365,981. That gap is a talking point, not a promise.
Year notes for Checklist sample
- Year 1 of Checklist sample has rent of $43,000.
- Shared building cost is $9,000.
- A credit of $17,000 lowers the cash you pay that year.
- Cash out this year is about $35,000. Identity is fixed. Money still moves.
- Later cash gets a shrink for time. At 8 percent, year 1 is worth about $32,407 today.
- Next, year 2 rent is $44,290.
- CAM, which is a shared building cost, is $9,270.
- There is no credit in this year.
- You pay about $53,560 this year after extras and credits. The credit is gone and the bump shows.
- Time shrinks later cash. At 8 percent, year 2 is worth about $45,919 today.
- Then year 3 rent is $45,619.
- Extras for the building come to $9,548.
- Credits skip this year.
- The net cash this year is about $55,167. Risk lines start to matter.
- Waiting has a price. At 8 percent, year 3 is worth about $43,793 today.
- After that, year 4 rent is $46,987.
- The shared building cost this time is $9,835.
- No extra credit shows up this year.
- Cash out this year is about $56,822. Later cash still sits on the sheet.
- Later cash gets a shrink for time. At 8 percent, year 4 is worth about $41,766 today.
- In year 5 of Checklist sample, rent is $48,397.
- Shared building cost is $10,130.
- There is no credit in this year.
- You pay about $58,527 this year after extras and credits. The last year is part of the term you sold.
- Time shrinks later cash. At 8 percent, year 5 is worth about $39,832 today.
- Year 6 of Checklist sample has rent of $49,849.
- CAM, which is a shared building cost, is $10,434.
- Credits skip this year.
- The net cash this year is about $60,283. Keep this later year in the sum for the sample.
- Waiting has a price. At 8 percent, year 6 is worth about $37,989 today.
- Next, year 7 rent is $51,344.
- Extras for the building come to $10,747.
- No extra credit shows up this year.
- Cash out this year is about $62,091. 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 $36,230 today.
- Then year 8 rent is $52,884.
- The shared building cost this time is $11,069.
- There is no credit in this year.
- You pay about $63,953 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 $34,552 today.
- After that, year 9 rent is $54,471.
- Shared building cost is $11,401.
- Credits skip this year.
- The net cash this year is about $65,872. The row still belongs in the sum for the long path.
- Waiting has a price. At 8 percent, year 9 is worth about $32,952 today.
- In year 10 of Checklist sample, rent is $56,105.
- CAM, which is a shared building cost, is $11,743.
- No extra credit shows up this year.
- Cash out this year is about $67,848. 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 $31,427 today.
Add those year values. The sample NPV for Checklist sample is about $376,867. This is a teaching sample, not a client result.
Trusted sources
These are public references. They are not endorsements and not client results.