NVI Technical College Information

Financial Feasibility

Sensitivity Analysis │ 10.0% 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

$8,205,560 $17,453,869 $17,977,485 $18,516,810 $19,072,314 $19,644,483 $20,233,818 $20,840,833 $21,466,057 $22,110,039

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

= = = = = = = = = =

$6,564,448 $11,170,476 $9,204,472 $7,584,485 $6,249,616 $5,149,683 $4,243,339 $3,496,511 $2,881,125 $2,374,047

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 $185,521,268

$58,918,205

$185,521,268. This amount was discounted to about $58,918,205.

Present Value of Reversion

The EBITDA multiplier indicated $77,385,137 discounted to about

$77,385,137

x

0.0859

=

$6,647,333

Present Value of Cash Flow and Reversion EBITDA Multiplier

$6,647,333.

3.50x

$65,565,537

ROUNDED

$65,600,000

These items added together indicated about $65,565,537, rounded

to $65,600,000. 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

$50,800,000 is indicated, thereby providing for a financially feasible

Entrepreneurial Profit

$50,800,000

enterprise based on this test.

Percentage

343.2%

Source: Wert-Berater Feasibility Studies, LLC.

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