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Cost of Equity 12%Corporate tax 30%Discount Period

Year 0 Year 1 Year 2Net Room Revenue 13200 000 13464 000 Possible loss in revenue -132 000 -134 640

Rent Revenue 170 000 170 000 Repair and Maintenance costs 10 000 10 000 Renovation costs -770 000Cost of facility usage billed -55 000 -55 000EBITDA 125 000 125 000 Depreciation -128 333 -128 333EBIT -3 333 -3 333Corporate Tax 0 0Net Income (Loss) -770 000 -3 333 -3 333

Operating Cash flowEBIT -3 333 -3 333Depreciation -128 333 -128 333Corporate Tax 0 0Operating Cash flow 125 000 125 000 Loss of Hotel revenue -132 000 -134 640Cash flow including opportunity cost -7 000 -9 640

CAPEX -770 000

Change in Net Working CapitalEnding Net Working CapitalStarting Net Working CapitalChange in Net Working Capital

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Year 3 Year 4 Year 5 Year 6 Premises14137 000 14844 000 15140 000 15443 000

-141 370 -148 440 -151 400 -154 430 1%

178 500 178 500 187 425 187 425 5%10 000 10 000 10 000 10 000 10 000

-770 000-55 000 -55 000 -55 000 -55 000 -55 000

133 500 133 500 142 425 142 425 -128 333 -128 333 -128 333 -128 333 6

5 167 5 167 14 092 14 092 1 550 1 550 4 228 4 228 30%

3 617 3 617 9 864 9 864

5 167 5 167 14 092 14 092 -128 333 -128 333 -128 333 -128 333

1 550 1 550 4 228 4 228 131 950 131 950 138 198 138 198 -141 370 -148 440 -151 400 -154 430

-9 420 -16 490 -13 203 -16 233

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ExplanationGivenFamily customers

Growth every two years

Range from 770k to 1mPro-rata allocation

Years

of Net Income (0 if loss)

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Ke 12%Corporate tax 30%Discount rate 5%

Year 0 Year 1 Year 2Net Room Revenue 13200 000 13464 000 Possible loss in revenue 660 000 673 200

Investment (Renovation) -800 000Investment (Equipment) -900 000Pub Revenue 4672 000 4905 600 Food & Beverage Costs -1168 000 -1226 400Salaries -747 520 -784 896Other Operating Expenses -1027 840 -1079 232Cost of facility usage -55 000 -55 000EBITDA -1700 000 1728 640 1815 072 Depreciation -283 333 -283 333

EBIT 1445 307 1531 739 Corporate Tax 433 592 459 522 Net Income (Loss) -1700 000 1011 715 1072 217

Operating Cash flowEBIT 1445 307 1531 739 Depreciation -283 333 -283 333Corporate Tax 433 592 459 522 Operating Cash flow 1295 048 1355 550 Loss of Hotel revenue Cash flow including opportunity cost 1295 048 1355 550

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Year 3 Year 4 Year 5 Year 6 Premises14137 000 14844 000 15140 000 15443 000

706 850 742 200 757 000 772 150 5%

-800 000-900 000

5150 880 5408 424 5678 845 5962 787 5%-1287 720 -1352 106 -1419 711 -1490 697 25%

-824 141 -865 348 -908 615 -954 046 16%-1133 194 -1189 853 -1249 346 -1311 813 22%

-55 000 -55 000 -55 000 -55 000 -55 0001905 826 2001 117 2101 173 2206 231

-283 333 -283 333 -283 333 -283 333 6

1622 492 1717 784 1817 839 1922 898 486 748 515 335 545 352 576 869 30%

1135 745 1202 448 1272 488 1346 029

1622 492 1717 784 1817 839 1922 898 -283 333 -283 333 -283 333 -283 333

486 748 515 335 545 352 576 869 1419 078 1485 782 1555 821 1629 362

1419 078 1485 782 1555 821 1629 362

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ExplanationGivenFamily customers

Can range from 800k to 1,2m

64 covers/day@200 /5% growthof salesof salesof salesPro-rata allocation

Years

of Net Income (0 if loss)