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Summary of the Results of Analysis Worksheet

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Summary of the Results of Analysis 12-month lease 48-month lease NPV - Single rate of 20% $27,762 $800,190 lts of Analysis NPV- Risk-adjusted rates $257,595 $2,551,763 IRR 20.3% 23.2% Assumptions LOI* purchase price Published value of nonserviceable engine Value of items missing trace** Adjusted purchase price % of value for rent adjustment $15,000,000 $750,000 $1,400,000 $12,850,000 10% $325,000 LOI monthly rent Additional rent for items lacking trace (10% of missing trace) Tax rate Required rate of return (annual) $140,000 0% 20% Appraised residual value at time of LOI Haircut for nonserviceable engine Haircut for missing trace Scrap value of unserviceable engine Revised estimate of one-year residual value Likely price reduction if sell after lease $14,000,000 ($750,000) ($1,400,000) $0 $11,850,000 20% Re-lease rent reduction Pcnt of re-lease months - 0% for sale rather than re-lease Residual in 48 months if re-lease ($3M each aircraft) 0% 80% $6,000,000 12 Month Lease: Month > Date Adjusted purchase price LOI monthly rent Additional rent for items lacking trace Residual value Total cash flows NPV IRR 0 Dec-13 ($12,850,000) $325,000 $140,000 ($12,385,000) $27,762 20.3% 1 Jan-14 $325,000 $140,000 $0 $465,000 48 Month Lease: Month > Date Adjusted purchase price LOI monthly rent Additional rent for items lacking trace 0 Dec-13 ($12,850,000) $325,000 $140,000 1 Jan-14 $325,000 $140,000 Residual value Total cash flows ($12,385,000) NPV IRR $800,190 23.2% ...
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