If one takes the proposal made to the City of Evansville at face value and calculates the present value of the cash flow that they are proposing of $2.5 Million per year for 15 years at 6% interest the present value calculates to just over $25,000,000 (that’s $25 Million).
The City County Observer is quite interested in the reason why some crafty private investor that has the ability to technically vet this proposal has not jumped all over an opportunity to make $25 Million from a $5 Million loan right now.
Doing the math another way one can ask for a present value of $5,000,000 and a 15 year annual payout of $2,500,000 per year what is the interest rate? The answer is 100%. The question is then if this proposal is to pay a return on investment of 100%, why has some private investor not come forward to accept this return?
IS IT TRUE that we wonder if the Finance Chairman of the Evansville City Council, Mr. John Friend, CPA is asking these questions before a competent board of advisors?…that we furthermore wonder with such a magnificent ROI if Councilman Friend would advise any of his private clients to get in on this action?
I think the city was out of line for this LOAN
It has not been approved or funded yet.
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