Why we need this function

There is another function called TStepRevGrow(Time, Base, Start, MktPrice, FirstRev, ToDates, AnnualRates, GrowthDates, GrowthRates, [RevMonthsOpt], [DayCount], [Periods], [ProjMode]). This functin grows the actual annual rates, so you end up with a stepped profile that has been inflated above what you input. This function, TStepRevThenGrow (emphasis on the Then) is possibly a more rational approach, in that it uses your exact stepped rates for the first, fixed, section of the projection, and only applies growth rates after the final stepped rate, using the last stepped rate as its starting point. This turns out to be useful in forecasting sales, where the first year or so you want to project quite specifically, but thereafter you are happy to let generic inflation rates govern the projection.

Example

TStepThenGrowRev.xls