Morning,
In short i have a huge list of leases lease's which all have varying terms etc, but the one im having trouble with is the rising/doubling rents and their NPV, Ill use one lease as an example:
lease start 01/01/2001
lease length 99
lease doubles every 25 years.
Initial rent £175
So I can work out the next rent review using =IF(AF3="","no RR",EDATE(AC3,CEILING(DATEDIF(AC3,TODAY(),"y")+1,AF3)*12))
where :
AF3 = multiplier period, i.e 25 years
AC3 = Lease start
Using the above how would i calculate the full NPV for this lease? i know a 2 stage lease with fixed rents i can do:
ROUND(PV(interestrate,stagelength,(rent*2))/(1+interestrate)^yearsdelayed,decplaces)
But how would i extend that to do my multi stage increasing rent lease as above!! its tricky
Cheers
Chris
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