NVI Technical College Information

Financial Feasibility

Pro Forma EBITDA Summary Years 1 through 10

Financial Returns

Internal Rate of Return Analysis Rate of Return on Equity Analysis (ROE) Debt Service Coverage Ratio Analysis (DSCR) NPV

$79,200,000

Cash Flow Unleveraged Item / Period

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

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

Total EBITDA (Net Operating Income)

$ 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

Reversion Value

$ 35,050,784

$

73,751,192

$

75,963,728

$ 78,242,640

$ 80,589,919

$ 83,007,616

$ 85,497,845

$ 88,062,780

$ 90,704,663

$ 93,425,803

Cost

3.00%

$

(1,051,524)

$

(2,212,536)

$

(2,278,912)

$

(2,347,279)

$

(2,417,698)

$

(2,490,228)

$

(2,564,935)

$

(2,641,883)

$

(2,721,140)

$

(2,802,774)

A

Net Cash Flow

$ 44,013,770

$

92,610,425

$

95,388,738

$ 98,250,400 101,197,912 $

$ 104,233,850 107,360,865 $

$ 110,581,691 113,899,142 $

$ 117,316,116

IRR (unleveraged)

Result % Project Cost

Cash Flow

3 Year Hold

19.4%

$

(79,200,000)

$ 10,014,510

$

21,071,769

$

95,388,738

5 Year Hold

23.1%

$

(79,200,000)

$ 10,014,510

$

21,071,769

$

21,703,922

$ 22,355,040 101,197,912 $

7 Year Hold

24.6%

$

(79,200,000)

$ 10,014,510

$

21,071,769

$

21,703,922

$ 22,355,040

$ 23,025,691

$ 23,716,462 107,360,865 $

10 Year Hold

25.5%

$

(79,200,000)

$ 10,014,510

$

21,071,769

$

21,703,922

$ 22,355,040

$ 23,025,691

$ 23,716,462

$ 24,427,956

$ 25,160,794

$ 25,915,618 117,316,116 $

EBITDA Multiplier

3.50x

3.50x

3.50x

3.50x

3.50x

3.50x

3.50x

3.50x

3.50x

3.50x

3.50x

Item / Period

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Leverage Equity Project Internal Rate of Return Analysis Annual Payment (P&I) $

1,690,000

$

1,690,000

$

1,690,000

$

1,842,845

$

1,842,845

$

1,842,845

$

1,842,845

$

1,842,845

$

1,842,845

$

1,842,845

$

1,842,845

Net Cash Flow

$

8,324,510

$

19,381,769

$

19,861,077

$ 20,512,195

$ 21,182,846

$ 21,873,617

$ 22,585,111

$ 23,317,949

$ 24,072,773

$ 24,850,242

Rate of Return on Equity (ROE) ( cash on cash )

13.36%

31.11%

31.88%

32.92%

34.00%

35.11%

36.25%

37.43%

38.64%

39.89%

DSCR

5.93x

12.47x

11.78x

12.13x

12.49x

12.87x

13.26x

13.65x

14.06x

14.48x

Equity Amount

$

62,300,000

IRR (leveraged)

Result % Equity Contribution Cash Flow

3 Year Hold

22.8%

$

(62,300,000)

$

8,324,510

$

19,381,769

$

79,003,887

5 Year Hold

26.8%

$

(62,300,000)

$

8,324,510

$

19,381,769

$

19,861,077

$ 20,512,195

$ 85,263,452

7 Year Hold

28.3%

$

(62,300,000)

$

8,324,510

$

19,381,769

$

19,861,077

$ 20,512,195

$ 21,182,846

$ 21,873,617

$ 91,976,058

10 Year Hold

29.2%

$

(62,300,000)

$

8,324,510

$

19,381,769

$

19,861,077

20,512,195 $

$ 21,182,846

$ 21,873,617

$ 22,585,111

$ 23,317,949

$ 24,072,773 102,991,051 $

Source: Wert-Berater Feasibility Studies, LLC

122