How it works
Write the cash list first. Then decide what the page is measuring.
- Open with the pick and the gap.
- Show the year table once.
- Show one worse case that still uses real inputs.
- Name the flip input.
- Close with what you still need from legal or the landlord.
Formula in words. CFO packet = pick + gap + base table + one worse case + flip input + open items.
| Input | Meaning |
|---|---|
| Base case | Shared stacks |
| Worse case | Coherent, not cartoon |
| Flip input | Rate, extra, or credit |
| Open items | Missing clauses |
Worked example
Here is a teaching sample. It is not customer data and not a result from a live client.
Lease A start rent$47,000
Lease B start rent$43,710
Discount rate8%
Sample NPV A$399,350
| Metric | Lease A | Lease B |
|---|---|---|
| Start rent | $47,000 | $43,710 |
| Year-1 extras | $8,100 | $8,667 |
| Year-1 credit | $18,000 | $9,900 |
| Sample NPV | $399,350 | $386,291 |
| Year | Rent | Extras | Credit | Cash out | Value today |
|---|---|---|---|---|---|
| Year 1 | $47,000 | $8,100 | $18,000 | $37,100 | $34,352 |
| Year 2 | $48,410 | $8,343 | $0 | $56,753 | $48,657 |
| Year 3 | $49,862 | $8,593 | $0 | $58,455 | $46,403 |
| Year 4 | $51,358 | $8,851 | $0 | $60,209 | $44,255 |
| Year 5 | $52,899 | $9,117 | $0 | $62,016 | $42,207 |
| Year 6 | $54,486 | $9,391 | $0 | $63,877 | $40,253 |
| Year 7 | $56,121 | $9,673 | $0 | $65,794 | $38,390 |
| Year 8 | $57,805 | $9,963 | $0 | $67,768 | $36,613 |
| Year 9 | $59,539 | $10,262 | $0 | $69,801 | $34,918 |
| Year 10 | $61,325 | $10,570 | $0 | $71,895 | $33,301 |
| Sample NPV | — | — | — | — | $399,350 |
How to read the sample
Sample NPV for CFO-packet sample is about $399,350. A second path lands near $386,291. That gap is a talking point, not a promise.
Year notes for CFO-packet sample
- Year 1 of CFO-packet sample has rent of $47,000.
- Shared building cost is $8,100.
- A credit of $18,000 lowers the cash you pay that year.
- Cash out this year is about $37,100. Year one is the credit slide.
- Later cash gets a shrink for time. At 8 percent, year 1 is worth about $34,352 today.
- Next, year 2 rent is $48,410.
- CAM, which is a shared building cost, is $8,343.
- There is no credit in this year.
- You pay about $56,753 this year after extras and credits. Year two is the first clean bill finance will feel.
- Time shrinks later cash. At 8 percent, year 2 is worth about $48,657 today.
- Then year 3 rent is $49,862.
- Extras for the building come to $8,593.
- Credits skip this year.
- The net cash this year is about $58,455. The bump is the later-year risk.
- Waiting has a price. At 8 percent, year 3 is worth about $46,403 today.
- After that, year 4 rent is $51,358.
- The shared building cost this time is $8,851.
- No extra credit shows up this year.
- Cash out this year is about $60,209. Later cash is the rate-test zone.
- Later cash gets a shrink for time. At 8 percent, year 4 is worth about $44,255 today.
- In year 5 of CFO-packet sample, rent is $52,899.
- Shared building cost is $9,117.
- There is no credit in this year.
- You pay about $62,016 this year after extras and credits. The last year still belongs in the packet.
- Time shrinks later cash. At 8 percent, year 5 is worth about $42,207 today.
- Year 6 of CFO-packet sample has rent of $54,486.
- CAM, which is a shared building cost, is $9,391.
- Credits skip this year.
- The net cash this year is about $63,877. Keep this later year in the sum for the sample.
- Waiting has a price. At 8 percent, year 6 is worth about $40,253 today.
- Next, year 7 rent is $56,121.
- Extras for the building come to $9,673.
- No extra credit shows up this year.
- Cash out this year is about $65,794. 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 $38,390 today.
- Then year 8 rent is $57,805.
- The shared building cost this time is $9,963.
- There is no credit in this year.
- You pay about $67,768 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 $36,613 today.
- After that, year 9 rent is $59,539.
- Shared building cost is $10,262.
- Credits skip this year.
- The net cash this year is about $69,801. The row still belongs in the sum for the long path.
- Waiting has a price. At 8 percent, year 9 is worth about $34,918 today.
- In year 10 of CFO-packet sample, rent is $61,325.
- CAM, which is a shared building cost, is $10,570.
- No extra credit shows up this year.
- Cash out this year is about $71,895. 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 $33,301 today.
Add those year values. The sample NPV for CFO-packet sample is about $399,350. This is a teaching sample, not a client result.
Trusted sources
These are public references. They are not endorsements and not client results.