I really struggle to understand concepts modeled in excel–and furthermore, excel’s number based interface makes it hard for me to really understand exponential growth and magnitude of changes. Anyways, there is a financial mechanic in proformas called “The Waterfall” and its a simple incentive structure for developers to get a promoted interest in the cashflows of a real estate deal from their partners for out performing their initial goal.
Anyways instead of building an infographic, or a large excel proforma to try to explain it…here is a very crude game. See if you can make a lot of $$ simply by buying hurdles in the right spot. This is NOT how the real world works.
Cheers