NVI Technical College Information

104 West Sierra Dr. Raymore, MO 64083 Ph 816-974-2951 CertifiedAssetAppraisals.com Valuations-USA.com

This appraisal is not subject to any hypothetical conditions.

STANDARDS OF VALUE

For the purpose of this appraisal, fair market value is defined by the Financial Accounting Standards Board (FASB). Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures (ASC 820) defines fair market value as: “ the price an entity would receive when an asset is sold or the price an entity would pay when a liability is transferred .”

The definition of fair value set forth in ASC 820 retains the exchange price notion in earlier definitions of fair

value. However, ASC 820 clarifies that the exchange price is the price in an orderly transaction between market

participants to sell the asset or transfer the liability in the principal or most advantageous market for the asset

or liability. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the

measurement date, considered from the perspective of a market participant that holds the asset or owes the

liability. Therefore, the definition focuses on the price that would be received to sell the asset or paid to

transfer the liability (an exit price), not the price that would be paid to acquire the asset or received to

assume the liability (an entry price).

The subject assets were valued under the premise of fair market value in continued use, which assumes that the assets are installed and the buyer intends to operate the assets in a similar manner as the seller, which is consistent with fair value. Implicit in the definition of fair market value are the following:

• Buyer and seller are typically motivated • Both parties are well informed or well advised, and acting in what they consider their best interests • A reasonable time is allowed for exposure in the open market • Payment is made in terms of cash in the United States dollars or in terms of financial arrangement comparable thereto • The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale

7