NVI Technical College Information

Financial Feasibility

Financial Feasibility

Assessment of the cost accounting system

Reliability of the financial projections and assumptions on

The management of the Company uses an outsourced Certified

which the financial statements are based. Two years (minimum)

Public Accountant who prepares their financial statements in

projected Income Statements and Cash Flow Statements,

compliance with federal tax regulation and in accordance the GAAP.

including Sensitivity Analysis.

Risks Related to:

The income approach of an appraisal is not an acceptable

The offering: The offering is private, and the management of the

feasibility study. (Revised 10-05-16, PN 489.). Ability of the

A

Company is seeking mortgage loan financing. There are no known

business to achieve the projected income and cash flow.

risks related to the offering.

Assessment of the cost accounting system. Availability of short

term credit for seasonable business. Risks Related to: The

Applicant financing plan:

As indicated by the Debt Service

offering, Applicant financing plan, Operational units, and Tax

Coverage Ratio (DSCR) results as presented in pro forma, the risks

issues.

related to the financing plan is low.

Ability of the business to achieve the projected income and cash

Operational units: The Company is a privately held Limited Liability

flow.

Company. This item is not applicable.

As presented in the Technical Feasibility section of this report, the

projected income and cash flow are based on market demand,

Tax issues: There are no known adverse Tax Issues.

historical tuition market supported pricing and attendance.

Source: Wert-Berater Feasibility Studies, LLC

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