-56,231,387 2.56 12,570,994 500,000 77,310, 143 24,750,876 2,653,900 27,404,776 2.82 77,310, 143 18,507,434 49,905,367 15 96,720 90,381, 137 100,589 2.62 96,346,292 13, 199,544 500.000 82,646,748 24, 750,876 2,653,900 27,404,776 3.02 82,646,748 17,986,340 -38,245,047 55,241,972 16 104,612 2.69 102,705, 148 13,859, 500.000 38,345,626 24,750,876 2,653,900 27,404,776 3.22 88,345,626 17,478,711 20,766,336 60,940,850 17 16,984,280 -3,782,056 67,026,414 18 108,797 2.76 109,483,687 14,552,497 500,000 94,431, 190 24, 750,876 2,653,900 27,404,776 3.45 94,431, 190 19 113, 149 2.83 116,709,611 15,280, 122 500,000 100,929,489 24,750,876 2,653,900 27,404,776 3.68 100,929,489 16,502,778 12,720,722 73,524,712 500,000 107,868,317 24, 750,876 2,653,900 27,404,776 3.94 107,868,317 16,033,938 28,754,660 80,463,540 20 117,675 2.90 124,412,445 16,044, 128 27,404,776 4.21 115,277,332 15,577,492 44,332, 151 87,872,555 21 122,382 2.97 132,623,666 16,846,335 500,000 115,277,332 24,750,876 2,653,900 3 04 141,376,828 17,688,651 500,000 123, 188, 177 24,750,876 2,653,900 27,404,776 4 50 123, 188, 177 15, 133, 172 59,465,323 95,783,401 22 127,277 150,744, 134 18,573,084 500.000 131,671,050 24,750,876 2,653,900 27,404,776 4 80 91,671,050 10,237,654 69,702,977 64,266,274 23 40,000,000 Add Capacity 132,400 3.12 24 132,400 3.20 154,512,738 19,501,738 500,000 134,511,000 24, 750,876 2,653,900 5,307,801 32,712,577 A 11 134,511,000 13,656,310 83,359,287 101,798,423 158,375,556 20,476,825 500,000 137,398,731 24,750,876 2,653,900 5,307,801 32,712,577 4.20 137,398,731 2,681,353 96,040,640 104,686, 154 25 132,400 3.28 21,500,666 500,000 140,334,279 24,750,876 5,307,801 30,058,677 4.67 140,334,279 1,774,811 107,815,451 110,275,602 26 132,400 3.36 162,334,945 27 132,400 3.44 166,393,319 22,575,700 500,000 143,317,619 24,750,876 5,307,801 30,058,677 4.77 143,317,619 10,931,936 118,747,387 113,258,942 146,348,667 24,750,876 5,307,801 30,058,677 4.87 146,348,667 10, 148,307 128,895,694 116,289,990 28 132,400 3.53 170,553, 152 23,704,485 500,000 149,427,272 24,750,876 5,307,801 30,058,677 4.97 149,427,272 9,419,807 138,315,501 119,368,595 29 132,400 3.62 174,816,980 24,889,709 500,000 132,400 3.71 179, 187,405 26, 134, 194 500,000 152,553,211 24, 750,876 5,307, 801 30,058,677 5.08 152,553,211 8,742,604 147,058, 104 122,494,534 30 132,400 3.80 183,667,090 27,440,904 500.000 155,726, 186 24,750,876 5,307,801 30,058,677 5.18 155,726, 186 8, 113, 129 155, 171,234 125,667,509 31 162,699,296 128,887, 141 32 132,400 3.90 188,258,767 28,812,949 500,000 158,945,818 24,750,876 5,307,801 30,058,677 5.29 3.945,818 7,528,062 3.99 192,965,237 30,253,597 500,000 162,211,640 5,307,801 5,307,801 30.56 162,211,640 6,984,308 169,683,604 156,903,839 33 132,400 165,523,091 6,478,990 176, 162,594 160,215,290 34 132,400 1.09 197,789,367 31,766,276 500,000 165,523,091 5,307,801 5,307,801 31.18 6,009,426 182, 172,020 163,571,711 35 132,400 4.20 202,734, 102 33,354,590 500,000 168,879,511 5,307,801 5,307,801 31.82 168,879,511 132,400 1.30 207,802,454 35,022,320 500,000 172,280, 134 0 Infinite 172,280, 134 5,573, 122 187,745, 142 172,280, 134 36 212,997,516 36,773,436 500.000 175,724,080 0 Infinite 175,724,080 5, 167,755 192,912,897 175,724,080 37 132,400 1.41 197,704,061 179,210,346 38 132,400 1.52 218,322,453 38.612, 108 500,000 179,210,346 Infinite 179,210,346 4,791, 164 Infinite 182,737,802 4,441,336 202, 145,397 182,737,802 39 132,400 1.63 223,780,515 40,542,71 500,000 182,737,802 186,305, 179 40 132,400 4.75 229,375,028 42,569,849 500,000 186,305, 179 Infinite 186,305, 179 4, 116,400 206,261,797 132,400 4.87 235, 109,403 44,698,341 500,000 189,911,062 Infinite 189,911,062 3,814,610 210,076,407 189,911,062 41 213,610,753 193,553,880 42 132,400 4.99 240,987, 138 46,933,258 500,000 193,553,880 Infinite 193,553,880 3,534,346 O 49,279,921 500,000 197,231,896 Infinite 197,231,896 3,274,098 216,884,851 197,231,896 43 132,400 5.11 247,011,817 318,000,000 5,606,745,457 894,878,341 742,526,281 31,846,804 63,693,608 838,066,694 4,335,367, 116 Totals 20,500,000 4,691,367, 116 Average 114,423,588Toll Road Investors Partnership ll, L.P. (A Virginia limited partnership) Balance Sheets December 31, 2013 and 2012 2013 2012 Assets Project investment, net $ 262,642,849 $ 270,114,772 Funds held in escrow 154,670,117 150,585,705 Cash and cash equivalents 1,829,584 2,242,215 Prepaid bond insurance (net of accumulated amortization of $17,808,037 and $16,048,899, respectiyely) 68,235,848 69,994,986 Deferred bond issue costs (net of accumulated amortization of $4,926,370 and $4,467,876, respectiyely} 15,636,339 16,094,833 Accrued interest receivable 2,548 9,295 Prepaid expenses and other assets 505,019 542,532 Fixed assets (net of accumulated depreciation of $1 ,344,763 and $1,301,177, respectively) 311,979 299,132 Total assets $ 503,834,283 $ 509,883,470 Liabilitiesand Partners' Deficit Current portion of long-term debt and accrued interest payable of $935,155 for both 2013 and 2012 $ 55,935,155 $ 52,135,156 Long-term debt 964,093,253 958,481,503 Accounts payable and accrued expenses Easement payable 5,486,267 4,953,606 Other accounts payable and accmed expenses 1,090,552 664,654 VIP program accrual 394,176 369,242 Total accounts payable and accrued expenses 6,970,995 5,987,502 Total liabilities 1,026,999,403 1,016,604,161 Partners' decit (523,165,120) (506,720,691) Total partners' decit (523,165,120) (506,720,691) Total liabilities and partners' decit $ 503,834,283 $ 509,883,470 The accompanying notes are an integral part of these financial statements. 2 Toll Road Investors Partnership ll, L.P. (A Virginia limited partnership) Statements of Operations For the Years Ended December 31, 2013 and 2012 Revenue Toll revenue Other revenue Total revenue Operating expenses Operation and maintenance expense General and administrative Legal and consulting Depreciation Real estate property taxes State police agreement Electronic toll/credit card processing fees VIP miles program expense Insurance expense Easement fees Engineering senaices Licenses and fees Total operating expenses Operating income Other income and expenses Interest income (Loss) on debt retirement (Note 6) (Loss) gain on xed asset disposals Interest expense (Note 6) Total other income and expenses Net loss $ 201 3 74,559,680 333,103 74,892,783 4,673,389 2,1 14,466 654,696 9,452,936 3,280,048 869,586 2,095,503 756,987 570,295 1 ,1 32, 661 224,997 229,034 26,054,598 48,838,185 42,785 (2,266) (65,323,133) (65,262,614) (16,444,426) $ The accompanying notes are an integral part of these financial statements. 3 2012 72,042,883 329,907 72,372,790 4,217,471 1,856,522 112,558 9,651,564 2,640,681 814,541 2,136,990 764,026 569,919 1,132,661 207,697 219,823 24, 324,453 48,048,337 146,566 (121,123) 21,221 (64,828,709) (64,780,023) (16,731 ,666) Toll Road Investors Partnership II, L.P. A Virginia limited partnership) Statements of Changes in Partners' Deficit For the Years Ended December 31, 2013 and 2012 General Partner Limited Partners Shenandoah Shenandoah Dulles Greenway Limited Greenway Shenandoah I Partners' Corporation Partnership AIE LLC Partnership LLC Deficit Balances at December 31, 2011 $ (465,095) $ (226,909,842) $ (142,012,321) $ (68,051,220) $ (52,550,527) $ (489,989,005) Allocation of net loss (16,732) (7,815,370) 4,907,905) (2,230,836) (1,760,843) (16,731,686) Balances at December 31, 2012 (481,827) (234,725,212) 146,920,226) (70,282,056) (54,311,370) 506,720,691) Allocation of net loss (16,443) (7,681,193) (4,823,645) (2,192,536) (1,730,612) (16,444,429) Balances at December 31, 2013 $ (498,270) $ (242,406,405) $ (151,743,871) $ (72,474,592) $ (56,041,982) $ (523,165,120) The accompanying notes are an integral part of these financial statements.Toll Road Investors Partnership ll, L.P. (A Virginia limited partnership) Statements of Cash Flows For the Years Ended December 31, 2013 and 2012 Gash flows from operating activities Net loss Adjustments to reconcile net loss to net cash provided by operating activities Depreciation Loss (gain) on disposal of xed assets Loss on early purchase and retirement of bonds Accretion of bond discount Amortization of prepaid bond insurance and deferred bond issue costs Changes in operating assets and liabilities Accrued interest receivable Prepaid expenses and other assets Accounts payable and accrued expenses Net cash provided by operating activities Cash flows from investing activities Net (increase) decrease in funds held in escrow Proceeds from the disposal of xed assets Purchases of xed assets Payments for capital improvements to project investments Net cash provided by investing activities Gash ows from financing activities Scheduled bond redemptions Early purchase and retirement of bonds Net cash used in nancing activities Net (decrease) increase in cash and cash equivalents Gash and cash equivalents Beginning of year End of year Supplemental cash flow information Cash paid for interest The accompanying notes are an integral part of these financial statements. 5 $ $ 2013 (16,444,429) 9,452,936 2,266 60,611,750 2,217,632 6,747 93,072 983,493 56,923,467 (4,064,412) 3,766 (99,396) (1,955,996) (6,136,096) (51,200,000) (51,200,000) (412,631) 2,242,215 1,829,584 2,493,750 $ $ $ 201 2 (16,731,666) 9,651,564 (21,221) 121,123 60,047,293 2,287,666 36,941 (77,616) 1,021,366 56,335,452 6,222,666 5,600 (156,744) (1,336,900) 6,734,022 (47,700,000) (14,665,150) (62,565,150) 464,324 1 ,757,891 2,242,215 2,493,750 2. In the class we have shown the feasibility and financial analysis of Dulles Greenway. The Dulles Greenway toll road is a 22-km operating toll road, linking the Dulles International Airport to Leesburg, through Loudoun County, Virginia. Loudoun County has been one of the fastest growing counties in the United States, with significant housing and economic development in the corridor. The road is six lanes for most of its length, and can be expanded to meet future traffic demands. Leesburg 7 DULLES GREENWAY WASHINGTON DC Loudoun 28 Middleburg . County Dulles Toll Road + 50 Dulles Tysons Corner 15 International .Falls Church . Arlington Airport Vienna + Reagan Fairfax . 195 National Airport Fairfax County 66 Alexandria 123 After the completion of the highway, the actual income and estimated income have a significant distinction. Compare the excel sheet and its financial report answer following questions. 1. What are the major differences between the spreadsheet and reports? (10 marks) 2. What are the major reasons of the discrepancies between the real cost/revenue and the value you calculated.?A B C D E F G H J K L M N 0 P Q R S Dulles Greenway Investment Analysis Variables/Parameters C6 = Toll C7 = TollGr $ Tolls/veh (Yrs. 3-6) 2 C8 = TraffGr3 22 0.025 C9 = TraffGr23_31 Rate of Increase Toll/veh (Yrs. 7-43) C10 = OMGr Annual Traffic growth % (Yrs 3-22) 10 C11 = Constint Annual Traffic growth % (Yrs 23-31) 4 5 C12 = DR Annual Rate of O&M Growth (%) C13 = StartTraff Construction Loan Interest 8% C14 = IntTraff IRR on Project NPV Project IRR on Equity Assumed Discount Rate 10% 14% 216,884,851 21% Starting Traffic Volume 34,000 Intermed. Traffic @ 1st Improvement 93,000 Gross NET Revenues Debt Service Debt Coverage Ratio: Alt. NPV Project Calculation Max. Traffic @ 2nd Improvement 132,400 O&M Annual Costs - Police, Lease Paid Net Revenues 30 Yr Fixed 12 Yr Fixed 12 Yr Fixed Net Revenues Net Annual 216.884,851 Toll Gross Toll Resurfacing Metrop. Wash. After O&M and Payment on Payment on Payment on Total Debt Divided by Project Free Capital Cost Equity Traffic/day Rate Revenues Toll Collection Airpt. Auth. Lease Paymts Deb First Improt. 2nd Imprut. Service Debt Service Cash Flow Pres Val Cum NPV Equity Year/Index -38,000,000 -38,000,000 -38,000,000 -38,000,000 0 38,000,000 -155,272,727 129,000,000 nterest During 6,880,000 129,000,000 -117,272,727 129,000,000 -106,611,570 -261,884,298 0 129,000,000 Construction 13,760,000 34,000 2.00 24,820,000 7,000,000 500,000 17,320,000 24,750,876 24,750,876 0.70 17,320,000 13,012,772 -248,871,525 -7,430,876 37,400 2.00 27,302,000 7,350,000 500,000 19,452,000 24,750,876 24,750,876 0.79 19,452,000 13,285,978 -235,585,547 5,298,876 41, 140 2.00 30,032,200 7,717,500 500,000 21,814,700 24,750,876 24,750,876 0.88 21,814,700 13,545,212 -222,040,335 -2,936, 176 45,254 2.05 33,861,306 8, 103,375 500,000 25,257,931 24,750,876 24,750,876 1.02 25,257,931 14,257,443 -207,782,892 507,054 4,419,202 49.779 38, 178,622 8,508,544 500.000 29, 170,078 24,750,876 24,750,876 1.18 29, 170,078 14,968, 862 -192,814,029 UNESCO VOLAWN. 2. 10 2. 15 43,046,396 8,933,971 500.000 33,612,425 24,750,876 24,750,876 1.36 15,680,444 177, 133,585 8.861,549 54.757 33,612,425 60.233 2.21 48,534,812 9.380.669 500.000 38,654, 142 24,750,876 24,750,876 1.56 38,654, 142 16,393, 130 160,740,455 13,903,266 54,723,000 9,849,703 500,000 44.373,297 24, 750,876 24,750,876 1.79 44,373,297 17, 107,827 -143,632,628 19,622,421 66.256 2.26 72.882 2.32 61,700, 183 10,342, 188 500,000 50,857,995 24, 750,876 24,750,876 2.05 50,857,995 17,825,417 -125,807,211 26, 107, 119 -107,260,457 33,456,783 80, 170 2.38 69,566,956 10,859,298 500,000 58,207,659 24,750,876 24,750,876 2.35 58,207,659 18,546,754 20,000,000 Add X-Change 88, 187 2.44 78,436,743 11,402,262 500,000 66,534,481 24,750,876 24,750,876 2.69 46,534,481 13,479,381 -93,781,076 21,783,605 14 93,000 2.50 84,785,307 11,972,376 500,000 72,312,932 24,750,876 2,653,900 27,404,776 2.64 72,312,932 19,042,255 -74,738,821 44,908, 155 15 96,720 2.56 90,381, 137 12,570,994 500,000 77,310, 143 24,750,876 2,653,900 27,404,776 2.82 77,310, 143 18,507,434 -56,231,387 49,905,367 16 100,589 2.62 96,346,292 13, 199,544 500,000 82,646,748 24,750,876 2,653,900 27,404,776 3.02 82,646,748 17,986,340 -38,245,047 55,241,972 17 104,612 1.69 102,705, 148 13,859,521 500,000 88,345,626 24,750,876 2,653,900 27,404,776 3.22 88,345,626 17,478,711 -20,766,336 60,940,850 18 108,797 2.76 109,483,687 14,552,497 500,000 94,431, 190 24,750,876 2,653,900 27,404,776 3.45 94,431, 190 16,984,280 -3,782,056 67,026,414 19 113, 149 2.83 116,709,611 15,280, 122 500,000 100,929,489 24,750,876 2,653,900 27,404,776 3.6 100,929,489 16,502,778 12,720,722 73,524,712 20 117,675 2.90 124,412,445 16,044, 128 500,000 107,868,317 24,750,876 2,653,900 27,404,776 3.94 107,868,317 16,033,938 28,754,660 80,463,540 122,382 2.97 132,623,666 16,846,335 500,000 115,277,332 24,750,876 2,653,900 27,404,776 4.21 115,277,332 15,577,492 44,332, 151 87,872,555 CO 21 141,376,828 17,688,651 500,000 123, 188, 177 24, 750,876 2,653,900 27,404,776 4.50 123, 188, 177 15, 133, 172 59,465,323 95,783,401 22 127,277 3.04 4.80 10,237,654 69,702,977 64,266,274 23 40,000,000 Add Capacity 132,400 3.12 150,744, 134 18,573,084 500.000 131,671,050 24,750,876 2,653,900 27,404,776 91,671,050