Hello. I am not sure how to model/structure an IF THEN statement in excel. Or if the result I am looking for requires a nested statement or not.

Basically, I have an excel cash flow problem. A certain partner is entitled to a performance fee if a certain threshhold is achieved:

PROBLEM SET-UP: If the annual cash flow is greater than $12.5 million, then Partner A gets 10% of the amount ABOVE this $12.5 million threshold. HOWEVER, this 10% performance fee is capped at 1% of total project revenue in any given year.

ROW 1 is the annual cash flow amount: $10 million in Year 1, $14 million in Year 2, etc.
ROW 2 is the annual cash flow threshold of the $12.5 million: This remains fixed.

So in year 1 there is not performance fee paid out, but in year 2 there is $150,000 fee paid out to Partner A. (10% of the $1.5 million)

ROW 3 is the total annual cap based on 1% of total revenue: Year 1: $110,000, Year 2: $200,000, etc.

So I have an IF statement saying, IF(ROW 1 is greater than ROW 2, then multiply 10% times the difference, otherwise ZERO)

But how do I model in the condition that IF ROW 3 exceeds a certain amount this is the amount the forumla should yield? Is this an ELSE statment or OR or AND???

How might this look? Thank you.