NVI Technical College Information

Financial Feasibility

there is an operating history whereby operating costs, prices and

Financial Feasibility Conclusion ׀ Continued

usage rate can all be calculated based on actual figures. This is

Sensitivity Analysis Results

important when projecting new financial risks for a continuance

A reduction of revenue of 5.0 and 10.0 percent was made to the 10

project.

year pro forma statement. Under each analysis, the subject project

demonstrated a DSCR greater than the minimum 1.20x and an NPV

Replacement Reserves Reasoning

greater than the subject project cost, thereby indicating financial

This item was added to the pro forma based on information

feasibility under each test.

provided by the Marshall & Swift Cost Guide for 2020. The estimate

was based on $0.25 per square foot of Gross Building Area (GBA) be

Breakeven Analysis Results

reserved for major capital items.

This test was based on the subject project achieving a minimum

DSCR in year 1 monthly pro forma, of 1.20x. A reduction in revenue

Revenue and Expenses Growth Rates Reasoning

of 46 percent was made to indicate this minimum DSCR.

The

A 3.0 percent change was used based on the Consumer and

revenue reduction is substantial, thereby lending support for the

Producer Price Index reported in December of 2023 by the Bureau

expansion, whereas the revenue could absorb an economic shock

of Labor Statistics.

and remain solvent. Reduction in usage from 800 to 252 students

provided the same result.

Conclusion

Overall, the reliability of the financial statements is good because

Source: Wert-Berater Feasibility Studies, LLC.

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