So I wanted to see if there is an efficient way to model this:
I have a schedule of cashflows that is connected to a schedule of sales for various parcels of real estate. the parcels of real estate are broken out in 3 buckets with bucket one being all sold by year 2, bucket two by year three.
We have a constraint to pay down all of the debt and interest by year 3. We have made assumptions as to the sale prices per acre of each of the lots in each of the bucket. bucket one has about 3 lots and bucket B has about 7 and derived the cashflows and the debt paydown schedule.
We want to figure out what is the minimum price per acre for each of the lots we can afford to sell at to be able to paydown the debt by the end of year 3 as stipulated.
Any efficient way to do this in excel with add-ins, or other ways to go about this?
Thanks!
You probably need to expand a bit on your problem (or perhaps just clarify). On face, the issue seems deceivingly simple. You have L number of lots to sell, and must sell at some unit price, P, sufficiently high for L * P to equal or exceed debt balance, D.
Assuming P grows each year, just set P1 (price in year one) as a variable, and ascribe growth rates to get P2 and P3. You can Goal Seek to find the value for P1 that will make the quantity P1L1 + P2L2 + P3*L3 = D.
I was going to advise implementing Goal Seek but re-ib-ny worded it better than I would have.
However, I need to figure out a way to find the minimum prices for p1, p2, p3 (nto just p1) etc and also take into account the buckets. is that too many variables to have a solution?
So bucket one contains 3 lots. so p1l1 + p2l2 + p3*l3 = proceeds from bucket one. then i have bucket two that contains 7 lots. so pr(proceeds) from bucket a + pr bucket b = D . Now to find out each of those L's min prices is what I am looking for. There seems to be too many variables to do this efficiently?
Thanks for your help!
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