How it works
The cash flow is the list of money in and out by year. Write that list first.
- Open with the use, then the cash, then the flip tests, and end with leftovers.
- Keep sample math labeled as samples.
- Do not claim customers or results this site does not have.
- Point to the pilot if they want to try the workflow.
Formula in words. Story = fit + occupancy cash + sensitivity + leftovers.
| Input | Meaning |
|---|---|
| Use | What the team must do in the space |
| Cash | Rent, extras, credits |
| Tests | What can flip |
| Unknowns | What is still missing |
Worked example
Here is a teaching sample. It is not customer data and not a result from a live client.
Lease A start rent$40,500
Lease B start rent$37,665
Discount rate8%
Sample NPV A$368,002
| Metric | Lease A | Lease B |
|---|---|---|
| Start rent | $40,500 | $37,665 |
| Year-1 extras | $9,100 | $9,737 |
| Year-1 credit | $7,000 | $3,850 |
| Sample NPV | $368,002 | $354,323 |
| Year | Rent | Extras | Credit | Cash out | Value today |
|---|---|---|---|---|---|
| Year 1 | $40,500 | $9,100 | $7,000 | $42,600 | $39,444 |
| Year 2 | $41,715 | $9,373 | $0 | $51,088 | $43,800 |
| Year 3 | $42,966 | $9,654 | $0 | $52,620 | $41,771 |
| Year 4 | $44,255 | $9,944 | $0 | $54,199 | $39,838 |
| Year 5 | $45,583 | $10,242 | $0 | $55,825 | $37,994 |
| Year 6 | $46,950 | $10,549 | $0 | $57,499 | $36,234 |
| Year 7 | $48,359 | $10,865 | $0 | $59,224 | $34,557 |
| Year 8 | $49,810 | $11,191 | $0 | $61,001 | $32,957 |
| Year 9 | $51,304 | $11,527 | $0 | $62,831 | $31,431 |
| Year 10 | $52,843 | $11,873 | $0 | $64,716 | $29,976 |
| Sample NPV | — | — | — | — | $368,002 |
How to read the sample
Sample NPV for the client-packet lease is about $368,002. A second path lands near $354,323. That gap is a talking point, not a promise.
A client can follow year one if you speak in cash, not slogans. If one path wins only because a credit sat in the wrong year, start over.
Year notes for the client-packet lease
- Year 1 of the client-packet lease has rent of $40,500.
- Shared building cost is $9,100.
- A credit of $7,000 lowers the cash you pay that year.
- Cash out this year is about $42,600. A client can follow year one if you speak in cash, not slogans.
- Later cash gets a shrink for time. At 8 percent, year 1 is worth about $39,444 today.
- Next, year 2 rent is $41,715.
- CAM, which is a shared building cost, is $9,373.
- There is no credit in this year.
- You pay about $51,088 this year after extras and credits. Extras show up in the story here.
- Time shrinks later cash. At 8 percent, year 2 is worth about $43,800 today.
- Then year 3 rent is $42,966.
- Extras for the building come to $9,654.
- Credits skip this year.
- The net cash this year is about $52,620. Steps need a sentence in this year.
- Waiting has a price. At 8 percent, year 3 is worth about $41,771 today.
- After that, year 4 rent is $44,255.
- The shared building cost this time is $9,944.
- No extra credit shows up this year.
- Cash out this year is about $54,199. Mention the rate in the same breath here.
- Later cash gets a shrink for time. At 8 percent, year 4 is worth about $39,838 today.
- In year 5 of the client-packet lease, rent is $45,583.
- Shared building cost is $10,242.
- There is no credit in this year.
- You pay about $55,825 this year after extras and credits. The sample path closes on this last taught year.
- Time shrinks later cash. At 8 percent, year 5 is worth about $37,994 today.
- Year 6 of the client-packet lease has rent of $46,950.
- CAM, which is a shared building cost, is $10,549.
- Credits skip this year.
- The net cash this year is about $57,499. Keep this later year in the sum for the sample.
- Waiting has a price. At 8 percent, year 6 is worth about $36,234 today.
- Next, year 7 rent is $48,359.
- Extras for the building come to $10,865.
- No extra credit shows up this year.
- Cash out this year is about $59,224. 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 $34,557 today.
- Then year 8 rent is $49,810.
- The shared building cost this time is $11,191.
- There is no credit in this year.
- You pay about $61,001 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 $32,957 today.
- After that, year 9 rent is $51,304.
- Shared building cost is $11,527.
- Credits skip this year.
- The net cash this year is about $62,831. The row still belongs in the sum for the long path.
- Waiting has a price. At 8 percent, year 9 is worth about $31,431 today.
- In year 10 of the client-packet lease, rent is $52,843.
- CAM, which is a shared building cost, is $11,873.
- No extra credit shows up this year.
- Cash out this year is about $64,716. 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 $29,976 today.
Add those year values. The sample NPV for the client-packet lease is about $368,002. This is a teaching sample, not a client result.
Questions this topic answers
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Trusted sources
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