NVI Technical College Information

Financial Feasibility

Sensitivity Analysis │ 5.0% Revenue Reduction

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

$72,400,000

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

$

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

Total EBITDA (Net Operating Income)

$

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

Reversion Value

$ 31,885,122

$

67,419,867

$

69,442,463

$ 71,525,737

$ 73,671,509

$ 75,881,654

$ 78,158,104

$ 80,502,847

$ 82,917,932

$ 85,405,470

Cost

3.00%

$

(956,554)

$

(2,022,596)

$

(2,083,274)

$

(2,145,772)

$

(2,210,145)

$

(2,276,450)

$

(2,344,743)

$

(2,415,085)

$

(2,487,538)

$

(2,562,164)

A

Net Cash Flow

$ 40,038,603

$

84,660,090

$

87,199,893

$ 89,815,890

$ 92,510,366

$ 95,285,677

$ 98,144,248 101,088,575 $

$ 104,121,232 107,244,869 $

IRR (unleveraged)

Result % Project Cost

Cash Flow

3 Year Hold

19.4%

$

(72,400,000)

$

9,110,035

$

19,262,819

$

87,199,893

5 Year Hold

23.1%

$

(72,400,000)

$

9,110,035

$

19,262,819

$

19,840,704

$ 20,435,925

$ 92,510,366

7 Year Hold

24.6%

$

(72,400,000)

$

9,110,035

$

19,262,819

$

19,840,704

$ 20,435,925

$ 21,049,003

$ 21,680,473

$ 98,144,248

10 Year Hold

25.5%

$

(72,400,000)

$

9,110,035

$

19,262,819

$

19,840,704

$ 20,435,925

$ 21,049,003

$ 21,680,473

$ 22,330,887

$ 23,000,813

$ 23,690,838 107,244,869 $

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

$

7,420,035

$

17,572,819

$

17,997,859

$ 18,593,080

$ 19,206,157

$ 19,837,628

$ 20,488,042

$ 21,157,968

$ 21,847,993

$ 22,558,718

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

13.37%

31.66%

32.43%

33.50%

34.61%

35.74%

36.92%

38.12%

39.37%

40.65%

DSCR

5.39x

11.40x

10.77x

11.09x

11.42x

11.76x

12.12x

12.48x

12.86x

13.24x

Equity Amount

$

55,500,000

IRR (leveraged)

Result % Equity Contribution Cash Flow

3 Year Hold

23.2%

$

(55,500,000)

$

7,420,035

$

17,572,819

$

70,815,042

5 Year Hold

27.2%

$

(55,500,000)

$

7,420,035

$

17,572,819

$

17,997,859

$ 18,593,080

$ 76,575,906

7 Year Hold

28.7%

$

(55,500,000)

$

7,420,035

$

17,572,819

$

17,997,859

$ 18,593,080

$ 19,206,157

$ 19,837,628

$ 82,759,440

10 Year Hold

29.6%

$

(55,500,000)

$

7,420,035

$

17,572,819

$

17,997,859

18,593,080 $

$ 19,206,157

$ 19,837,628

$ 20,488,042

$ 21,157,968

$ 21,847,993

$ 92,919,804

Source: Wert-Berater Feasibility Studies, LLC

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