| with loan | |
| Rent | 100 |
| Interest | 10 |
| Tax rate | 20% |
| Tax | 18 |
| Net Income | 72 |
| Paid off | |
| Rent | 100 |
| Interest | 0 |
| Tax rate | 20% |
| Tax | 20 |
| Net Income | 80 |
It means use $10 to trade $8. This is year 1. If you plan to spend $80 each year. The paid off one generates perpetual $80. The one with loan is not perpetual. In year 2
| with loan year one | Year 2 | |
| Rent | 100 | 100 |
| Interest | 10 | 10 |
| Tax rate | 20% | 20% |
| Tax | 18 | 18 |
| Net Income | 72 | 72 |
| Cash on hand | 10 | 2 |
| total cash | 82 | 74 |
| spend | 80 | 80 |
| remaining | 2 | -6 |
