NVI Technical College Information

Financial Feasibility

Discounted Cash Flow Analysis

PV Factor 25.00%

Projected EBITDA

As presented in the following table, to test financial feasibility based

Discounted Cash Flow Analysis

Year 1

on comparing pro forma EBITDA with NPV estimates, the EBITDA

$10,014,510 $21,071,769 $21,703,922 $22,355,040 $23,025,691 $23,716,462 $24,427,956 $25,160,794 $25,915,618 $26,693,087

x x x x x x x x x x

0.8000 0.6400 0.5120 0.4096 0.3277 0.2621 0.2097 0.1678 0.1342 0.1074

= = = = = = = = = =

$8,011,608 $13,485,932 $11,112,408 $9,156,624 $7,545,058 $6,217,128 $5,122,914 $4,221,281 $3,478,335 $2,866,148

2 3 4 5 6 7 8 9

based on pro forma was discounted over a 10-year period at a rate

of 25.0 percent.

An EBITDA multiplier was applied to year-10

EBITDA of 3.5x.

10

The estimates indicated an EBITDA over the 10-year period of about

TOTAL $224,084,849

$71,217,437

$224,084,849. This amount was discounted to about $71,217,437.

Present Value of Reversion

The EBITDA multiplier indicated $93,425,803 discounted to about

$93,425,803

x

0.0859

=

$8,025,215

Present Value of Cash Flow and Reversion EBITDA Multiplier

$8,025,215.

3.50x

$79,242,653

ROUNDED

$79,200,000

These items added together indicated about $79,242,653, rounded

to $79,200,000. The subject project cost estimate is $14,800,000. An

Entrepreneurial Profit greater than the subject project cost of

Subject Project Cost Allocation

$14,800,000

Per SF

$72.15

$64,400,000 is indicated, thereby providing for a financially feasible

Entrepreneurial Profit

$64,400,000

enterprise based on this test.

Percentage

435.1%

Source: Wert-Berater Feasibility Studies, LLC.

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