NVI Technical College Information

Financial Feasibility

Financial Feasibility Conclusion

Debt Service Coverage Ratio (DSCR) Table

Pro Forma Debt Service Coverage Ratio Indications Period NOI

As presented the pro forma was developed based on the estimated

Revenues that correspond with potential usage rate possibilities of

Debt Service

DSCR

Year 1

$

10,014,510

$

1,690,000

5.93x

800 students annually and market tuition pricing. The Operating

Year 2

$

21,071,769

$

1,690,000

12.47x

Year 3

$

21,703,922

$

1,690,000

11.78x

Expenses were based on recent historical existing operations which

Year 4

$

22,355,040

$

1,690,000

12.13x

are well-supported.

Year 5

$

23,025,691

$

1,690,000

12.49x

Year 6

$

23,716,462

$

1,690,000

12.87x

Year 7

$

24,427,956

$

1,690,000

13.26x

The Market Feasibility section of this report indicated that despite

Year 8

$

25,160,794

$

1,690,000

13.65x

Year 9

$

25,915,618

$

1,690,000

14.06x

the COVID 19 economic downturn, the demand for the educational

Year 10

$

26,693,087

$

1,690,000

14.48x

services provided by the Company were not only in demand but

Source: Wert-Berater FeasibilityStudies, LLC

prices were stable according to the recent industry reports

Internal Rate of Return (IRR) Results

presented in the Market Feasibility section. The market demand and

Equity Amount

$

62,300,000

price stability thus warrant the continuance program.

IRR (leveraged)

Result % Equity Contribution

3 Year Hold

22.8%

$

(62,300,000)

5 Year Hold

26.8%

$

(62,300,000)

7 Year Hold

28.3%

$

(62,300,000)

Debt Service Coverage Ratio (DSCR) Results

10 Year Hold

29.2%

$

(62,300,000)

As indicated in the following table, the DSCR is substantially greater

Based on the IRR results, the subject project is financially feasible

than the minimum 1.20x DSCR normally required, thereby lending

because the IRR is greater than the 25 percent discount rate that

support for the subject project whereas it is of low risk concerning

was applied to the Discounted Cash Flow Analysis (DCF) 5-,7-,10

its ability to repay the loan.

year hold periods.

Source: Wert-Berater Feasibility Studies, LLC.

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