Valuing PNC, page-2

Ignore it... you need to look at the liquidation cash flows and relate them to purchase year and consider the acquisition cost of the assets. Given liquidations occur over many years you need to monitor liquidations by vintage to get a good understanding of the return mechanics so that you can project cash flow expectatIons for the future (how much and when). You need to continue to add asset purchases into your calculation as to maintain liquidations new debt must permanently be acquired and if you assume growth these will also need to grow (and that growth be funded as it won't all be from organic cash flow). Obviously all of the staff and other costs are required for collection so assumptions must be made as to what those are including how they will scale with a growing business. A very brief comment on something that warrants a longer explanation....