NVI Technical College Information

Financial Feasibility

Sensitivity Analysis │ 5.0% Revenue Reduction

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

$9,110,035 $19,262,819 $19,840,704 $20,435,925 $21,049,003 $21,680,473 $22,330,887 $23,000,813 $23,690,838 $24,401,563

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

= = = = = = = = = =

$7,288,028 $12,328,204 $10,158,440 $8,370,555 $6,897,337 $5,683,406 $4,683,126 $3,858,896 $3,179,730 $2,620,098

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 $204,803,059

$65,067,821

$204,803,059. This amount was discounted to about $65,067,821.

Present Value of Reversion

The EBITDA multiplier indicated $85,405,470 discounted to about

$85,405,470

x

0.0859

=

$7,336,274

Present Value of Cash Flow and Reversion EBITDA Multiplier

$7,336,274.

3.50x

$72,404,095

ROUNDED

$72,400,000

These items added together indicated about $72,404,095, rounded

to $72,400,000. 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

$57,600,000 is indicated, thereby providing for a financially feasible

Entrepreneurial Profit

$57,600,000

enterprise based on this test.

Percentage

389.2%

Source: Wert-Berater Feasibility Studies, LLC.

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