NVI Technical College Information

Financial Feasibility

Sensitivity Analysis │ 10.0% 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

$65,600,000

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

$

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

Total EBITDA (Net Operating Income)

$

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

Reversion Value

$ 28,719,459

$

61,088,542

$

62,921,198

$ 64,808,834

$ 66,753,099

$ 68,755,692

$ 70,818,363

$ 72,942,914

$ 75,131,201

$ 77,385,137

Cost

3.00%

$

(861,584)

$

(1,832,656)

$

(1,887,636)

$

(1,944,265)

$

(2,002,593)

$

(2,062,671)

$

(2,124,551)

$

(2,188,287)

$

(2,253,936)

$

(2,321,554)

A

Net Cash Flow

$ 36,063,435

$

76,709,755

$

79,011,047

$ 81,381,379

$ 83,822,820

$ 86,337,505

$ 88,927,630

$ 91,595,459

$ 94,343,323

$ 97,173,622

IRR (unleveraged)

Result % Project Cost

Cash Flow

3 Year Hold

19.4%

$

(65,600,000)

$

8,205,560

$

17,453,869

$

79,011,047

5 Year Hold

23.1%

$

(65,600,000)

$

8,205,560

$

17,453,869

$

17,977,485

$ 18,516,810

$ 83,822,820

7 Year Hold

24.5%

$

(65,600,000)

$

8,205,560

$

17,453,869

$

17,977,485

$ 18,516,810

$ 19,072,314

$ 19,644,483

$ 88,927,630

10 Year Hold

25.5%

$

(65,600,000)

$

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

$ 97,173,622

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

$

6,515,560

$

15,763,869

$

16,134,640

$ 16,673,965

$ 17,229,469

$ 17,801,638

$ 18,390,973

$ 18,997,987

$ 19,623,212

$ 20,267,194

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

13.38%

32.37%

33.13%

34.24%

35.38%

36.55%

37.76%

39.01%

40.29%

41.62%

DSCR

4.86x

10.33x

9.76x

10.05x

10.35x

10.66x

10.98x

11.31x

11.65x

12.00x

Equity Amount

$

48,700,000

IRR (leveraged)

Result % Equity Contribution Cash Flow

3 Year Hold

23.7%

$

(48,700,000)

$

6,515,560

$

15,763,869

$

62,626,196

5 Year Hold

27.8%

$

(48,700,000)

$

6,515,560

$

15,763,869

$

16,134,640

$ 16,673,965

$ 67,888,360

7 Year Hold

29.3%

$

(48,700,000)

$

6,515,560

$

15,763,869

$

16,134,640

$ 16,673,965

$ 17,229,469

$ 17,801,638

$ 73,542,823

10 Year Hold

30.2%

$

(48,700,000)

$

6,515,560

$

15,763,869

$

16,134,640

16,673,965 $

$ 17,229,469

$ 17,801,638

$ 18,390,973

$ 18,997,987

$ 19,623,212

$ 82,848,557

Source: Wert-Berater Feasibility Studies, LLC

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