Calculation Method 4 for Years Leased (Forecasted Amount for Years 1 through 6)

This calculation method differs from the others because it forecasts amounts for three years only, regardless of the lease term or the number of years to forecast specified in the processing option of the AREF Budget Calculation program (R15L1091).

The system uses this setup information for this calculation:

• Retrieval Bill Codes: RRTL and RPKG.

• Monthly Recurring Billing Amounts: 20,000 (RRTL) and 5,000 (RPKG).

• Term of Real Estate Lease: 72 months (6 years).

• New Rate (from assumption detail): 3.00.

• Growth Pattern (from assumption detail): FIXED01.

The system calculates the revenue amounts for the term of the real estate lease based on the recurring billing amounts that are set up for the retrieval bill codes that you specify. Then, the system multiplies the result by the sum of the new rate and the amount from the fixed growth pattern for the corresponding year from the assumption detail.

This table illustrates how the system compounds the fixed growth pattern to derive the forecasted amount:

Year	Calculation: TRB x (RTD + GPF) = FA
1	25,000 × 72 × (3.00 + 50.00) = 95,400,000
2	25,000 × 72 × (3.00 + 50.00 + 100.00) = 275,400,000
3	25,000 × 72 × (3.00 + 50.00 + 100.00 + 125.00)= 500,400,000

Total forecasted amount for three years:95,400,000 + 275,400,000 + 500,400,000 = 871,200,000

The system updates the total forecasted amount to the first period of the first year that the real estate lease is effective in the F15L109 table. In this example, the system updates the total forecasted amount to period 01 of 2007.