How it works
Write the cash list first. Then decide what the page is measuring.
- Put identity and dates first.
- Put rent steps and extras next.
- Put credits in the months they happen.
- Put the rate in one cell.
- Keep calculations off the input sheet.
Formula in words. Honest model = dated inputs + extras + credits + one rate + checks.
| Input | Meaning |
|---|---|
| Start and end | The calendar |
| Rent steps | When the sticker changes |
| Extras | CAM, tax, insurance |
| Credits | Free rent and TI |
| Rate | Price of waiting |
Worked example
Here is a teaching sample. It is not customer data and not a result from a live client.
Lease A start rent$39,500
Lease B start rent$36,735
Discount rate8%
Sample NPV A$358,846
| Metric | Lease A | Lease B |
|---|---|---|
| Start rent | $39,500 | $36,735 |
| Year-1 extras | $9,500 | $10,165 |
| Year-1 credit | $12,000 | $6,600 |
| Sample NPV | $358,846 | $347,992 |
| Year | Rent | Extras | Credit | Cash out | Value today |
|---|---|---|---|---|---|
| Year 1 | $39,500 | $9,500 | $12,000 | $37,000 | $34,259 |
| Year 2 | $40,685 | $9,785 | $0 | $50,470 | $43,270 |
| Year 3 | $41,906 | $10,079 | $0 | $51,985 | $41,267 |
| Year 4 | $43,163 | $10,381 | $0 | $53,544 | $39,356 |
| Year 5 | $44,458 | $10,692 | $0 | $55,150 | $37,534 |
| Year 6 | $45,792 | $11,013 | $0 | $56,805 | $35,797 |
| Year 7 | $47,166 | $11,343 | $0 | $58,509 | $34,139 |
| Year 8 | $48,581 | $11,683 | $0 | $60,264 | $32,559 |
| Year 9 | $50,038 | $12,033 | $0 | $62,071 | $31,051 |
| Year 10 | $51,539 | $12,394 | $0 | $63,933 | $29,613 |
| Sample NPV | — | — | — | — | $358,846 |
How to read the sample
Sample NPV for Input-sheet sample is about $358,846. A second path lands near $347,992. That gap is a talking point, not a promise.
Year notes for Input-sheet sample
- Year 1 of Input-sheet sample has rent of $39,500.
- Shared building cost is $9,500.
- A credit of $12,000 lowers the cash you pay that year.
- Cash out this year is about $37,000. The date of this credit is the input that matters.
- Later cash gets a shrink for time. At 8 percent, year 1 is worth about $34,259 today.
- Next, year 2 rent is $40,685.
- CAM, which is a shared building cost, is $9,785.
- There is no credit in this year.
- You pay about $50,470 this year after extras and credits. Year two has no credit and a clean extra stack.
- Time shrinks later cash. At 8 percent, year 2 is worth about $43,270 today.
- Then year 3 rent is $41,906.
- Extras for the building come to $10,079.
- Credits skip this year.
- The net cash this year is about $51,985. The bump is an input, not a hardcoded later cell.
- Waiting has a price. At 8 percent, year 3 is worth about $41,267 today.
- After that, year 4 rent is $43,163.
- The shared building cost this time is $10,381.
- No extra credit shows up this year.
- Cash out this year is about $53,544. Later years should change when the bump cell changes.
- Later cash gets a shrink for time. At 8 percent, year 4 is worth about $39,356 today.
- In year 5 of Input-sheet sample, rent is $44,458.
- Shared building cost is $10,692.
- There is no credit in this year.
- You pay about $55,150 this year after extras and credits. The last year proves the end date you typed.
- Time shrinks later cash. At 8 percent, year 5 is worth about $37,534 today.
- Year 6 of Input-sheet sample has rent of $45,792.
- CAM, which is a shared building cost, is $11,013.
- Credits skip this year.
- The net cash this year is about $56,805. Keep this later year in the sum for the sample.
- Waiting has a price. At 8 percent, year 6 is worth about $35,797 today.
- Next, year 7 rent is $47,166.
- Extras for the building come to $11,343.
- No extra credit shows up this year.
- Cash out this year is about $58,509. 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 $34,139 today.
- Then year 8 rent is $48,581.
- The shared building cost this time is $11,683.
- There is no credit in this year.
- You pay about $60,264 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 $32,559 today.
- After that, year 9 rent is $50,038.
- Shared building cost is $12,033.
- Credits skip this year.
- The net cash this year is about $62,071. The row still belongs in the sum for the long path.
- Waiting has a price. At 8 percent, year 9 is worth about $31,051 today.
- In year 10 of Input-sheet sample, rent is $51,539.
- CAM, which is a shared building cost, is $12,394.
- No extra credit shows up this year.
- Cash out this year is about $63,933. 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 $29,613 today.
Add those year values. The sample NPV for Input-sheet sample is about $358,846. This is a teaching sample, not a client result.
Trusted sources
These are public references. They are not endorsements and not client results.