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The following is a 20-year cash flow analysis. This section provides the ownership group with annual EBITDA estimates and net cash calculations. It also provides a property sale analysis and a summary of the net cumulative cash that the project is projected to earn over time.

What follows is the 39-year balance sheet. Included is a breakdown of projected annual assets, liabilities, equity, EBITDA, amortization, depreciation, and net income. Also included are the financial ratios that accountants and banks typically use to benchmark performance.

The following matrix shows the net cash flow in terms of thousands of dollars for various combinations of occupancy and rent rates. This provides insight into the levels of both occupancy and rent rates needed to break even. All of the cells in white represent positive cash flow (in thousands of dollars), and the cells in black represent negative cash flow. The points at which the cash flow goes from positive to negative represent the breakeven point.

Below is a valuation of the property at stabilize occupancy. The Estimated Value is based on the principals of both the income and the cost approaches to the valuation of real estate. A simplified version of these techniques is used below to calculate the valuation used in this report. The cap rate used in the income approach is the rate that was calculated in the Market Rate Data section (p.4).

Within the first 3 to 5 years of the start of the project (1 year for construction and 1 to 2 years for lease-up and stabilization) the project will seek refinancing. A number of various refinancing options may be considered at that time. Several possible options are listed on this and the following pages.