I've got another update here today and it involves two joint venture waterfall templates. I built these a few years ago and both have been extremely successful. Now, this latest improvement gives them an even more complete analysis for the user.
I added a discounted cash flow analysis to the preferred equity and preferred return cash flow waterfall spreadsheets. This update is live right now and it is something that was definitely needed so that each leg of the joint venture is able to plug in a discount rate and see what the present value of their final exit cash flows are after all hurdles / logic has been applied.
These templates are really useful because they sit completely on a single tab and the user just plugs in cash required / distributed at the top and then all the logic works with that.
Having the ability to plug in a discount rate gives the user an added ability to measure the true value of the investment based on how risky or not risky it is. If the future cash flows are less than the initial investment, when discounted at the discount rate, then that will result in a negative NPV.
Note, any discount rate that is higher than the IRR will result in a negative NPV. This is the main reason why the IRR calculation is used so often as it ties directly into the net present value math.
Note, both of these models above are included in the joint venture Excel templates bundle.
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