Keep getting circular reference for management fee recovery in excel
Typical assumption for management fee is 3% of EGI but EGI includes the management fee recoveries. How do you model this in excel so there is no circular reference? I typically use Argus but I need to do this in excel. Thanks
[{"id": "fhf4j7r", "text": "The easiest way (albeit somewhat cheap) is to turn iterative calculations on to 1,000. This will pull the exact number from mgmt expense to your recovery.\n\nOnly other way that I can think of--while keeping the P&amp;L statement in its current format--is to hard code one or the other.", "replies": [], "depth": 1}, {"id": "fhfc1ds", "text": ".03/.97 (or .0309) of everything else that goes into egi.", "replies": [{"id": "fhgiq1q", "text": "Mathematically correct. This is more precise than calculating the management fee as being \n1.03 x 0.03 = .030900000, which is only one iteration.\n\nHOU_Civil_Econ's solution is more precise, being \n0.03092783505", "replies": [], "depth": 2}], "depth": 1}, {"id": "fk8pvgd", "text": "Tsmfinancialmodels.com just posted a blog/video on iterative calculations.  I found it very helpful", "replies": [], "depth": 1}]