EXAMPLE:
CELLS WITH DATA

B4 = 10% PREFERRED INVESTOR'S REQUIRED RETURN
SPLIT %
WATERFALLS PREFERRED INV/SECONDARY
INV
B C d E F
7 1ST WF 10% to 13% 80% 20%
8 2ND WF 13% to 20% 50% 50%
9 3RD WF 20% to Total CF 80% 20%



A B C D E F
13 Period 0 1 2 3 4
14 CF -$1,000 $50 $90 $200 $120
15 PRFD RTN $100 $100 $100 $100
16 PRFD RTN NOT RCD $50 $10 $0 $0
22 PRFD RTN RCVD $50 $90 $160 $100
23 1ST LEVEL WATERFALL
24 TO PREFERRED $0 $0 $24 $16
25 TO SECONDARY $0 $0 $6 $4
28 2ND LEVEL WATERALL
29 TO PREFERRED $0 $0 $5 $0
30 TO SECONDARY $0 $0 $5 $0
33 3RD LEVEL WATERFALL
34 TO PREFERRED $0 $0 $0 $0
35 TO SECONDARY $0 $0 $0 $0