How it works
The cash flow is the list of money in and out by year. Write that list first.
- Read the proposals. List missing fields in the open.
- Write the shared rules. Then fill both options.
- Compare. Test one or two knobs. Write four sentences.
- That is the path. Do not add a seventh tool in the middle.
Formula in words. Proposals → shared rules → compare → tests → summary.
| Input | Meaning |
|---|---|
| Proposal fields | Rent, extras, credits, dates |
| Shared rules | What is in or out |
| Compare | NPV at one rate |
| Summary | Fit, cash, flip, leftovers |
Worked example
Here is a teaching sample. It is not customer data and not a result from a live client.
| Metric | Lease A | Lease B |
|---|---|---|
| Start rent | $38,800 | $36,084 |
| Year-1 extras | $9,600 | $10,272 |
| Year-1 credit | $7,500 | $4,125 |
| Sample NPV | $358,483 | $346,175 |
| Year | Rent | Extras | Credit | Cash out | Value today |
|---|---|---|---|---|---|
| Year 1 | $38,800 | $9,600 | $7,500 | $40,900 | $37,870 |
| Year 2 | $39,964 | $9,888 | $0 | $49,852 | $42,740 |
| Year 3 | $41,163 | $10,185 | $0 | $51,348 | $40,762 |
| Year 4 | $42,398 | $10,490 | $0 | $52,888 | $38,874 |
| Year 5 | $43,670 | $10,805 | $0 | $54,475 | $37,075 |
| Year 6 | $44,980 | $11,129 | $0 | $56,109 | $35,358 |
| Year 7 | $46,329 | $11,463 | $0 | $57,792 | $33,721 |
| Year 8 | $47,719 | $11,807 | $0 | $59,526 | $32,160 |
| Year 9 | $49,151 | $12,161 | $0 | $61,312 | $30,671 |
| Year 10 | $50,626 | $12,526 | $0 | $63,152 | $29,252 |
| Sample NPV | — | — | — | — | $358,483 |
How to read the sample
Sample NPV for the model path lease is about $358,483. A second path lands near $346,175. That gap is a talking point, not a promise.
A model starts when year one is complete. If one path wins only because a credit sat in the wrong year, start over.
Year notes for the model path lease
- Year 1 of the model path lease has rent of $38,800.
- Shared building cost is $9,600.
- A credit of $7,500 lowers the cash you pay that year.
- Cash out this year is about $40,900. A model starts when year one is complete.
- Later cash gets a shrink for time. At 8 percent, year 1 is worth about $37,870 today.
- Next, year 2 rent is $39,964.
- CAM, which is a shared building cost, is $9,888.
- There is no credit in this year.
- You pay about $49,852 this year after extras and credits. Shared rules keep year two honest.
- Time shrinks later cash. At 8 percent, year 2 is worth about $42,740 today.
- Then year 3 rent is $41,163.
- Extras for the building come to $10,185.
- Credits skip this year.
- The net cash this year is about $51,348. The compare uses these later rows.
- Waiting has a price. At 8 percent, year 3 is worth about $40,762 today.
- After that, year 4 rent is $42,398.
- The shared building cost this time is $10,490.
- No extra credit shows up this year.
- Cash out this year is about $52,888. A test might change this year.
- Later cash gets a shrink for time. At 8 percent, year 4 is worth about $38,874 today.
- In year 5 of the model path lease, rent is $43,670.
- Shared building cost is $10,805.
- There is no credit in this year.
- You pay about $54,475 this year after extras and credits. The summary mentions this last year only if it matters.
- Time shrinks later cash. At 8 percent, year 5 is worth about $37,075 today.
- Year 6 of the model path lease has rent of $44,980.
- CAM, which is a shared building cost, is $11,129.
- Credits skip this year.
- The net cash this year is about $56,109. Keep this later year in the sum for the sample.
- Waiting has a price. At 8 percent, year 6 is worth about $35,358 today.
- Next, year 7 rent is $46,329.
- Extras for the building come to $11,463.
- No extra credit shows up this year.
- Cash out this year is about $57,792. 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 $33,721 today.
- Then year 8 rent is $47,719.
- The shared building cost this time is $11,807.
- There is no credit in this year.
- You pay about $59,526 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 $32,160 today.
- After that, year 9 rent is $49,151.
- Shared building cost is $12,161.
- Credits skip this year.
- The net cash this year is about $61,312. The row still belongs in the sum for the long path.
- Waiting has a price. At 8 percent, year 9 is worth about $30,671 today.
- In year 10 of the model path lease, rent is $50,626.
- CAM, which is a shared building cost, is $12,526.
- No extra credit shows up this year.
- Cash out this year is about $63,152. 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 $29,252 today.
Add those year values. The sample NPV for the model path lease is about $358,483. This is a teaching sample, not a client result.
Questions this topic answers
These are the standalone authority pages in this family. They are grouped so a reader can start, calculate, compare, or go deeper without a wall of cards.
Calculate it
Common mistakes
For your role
Trusted sources
These are public references. They are not endorsements and not client results.
How to use this with OccupancyNPV
This page answers the concept. OccupancyNPV applies it inside a DealWorkspace: enter lease scenarios, review cash-flow and occupancy cost, then compare NPV and discount-rate sensitivity. OccupancyNPV NPV is not the same as a face-rent comparison. OccupancyNPV is not a CRM or lease-administration suite, and this page is not legal or investment advice.
Next: start the 3-day free trial, open pricing, or continue through related product paths.