<PAGE>
                                   EXHIBIT A
CAPITOL COMMUNITIES CORPORATION
CASH FLOWS AND NPV OF HOMEBUILDING AT MAUMELLE

<TABLE> 
<S>                           <C>            <C>          <C>          <C>          <C>         <C>          <C>           
Lots to Develop                 4,500                                                                                        
Beginning Year                   1999                                                                                         
Avg. Sq. Footage/Unit           1,625          1,625        1,625        1,625        1,625       1,625        1,625         
Sales Price/Ft.                $80.00         $83.69       $85.51       $87.06       $88.62      $91.28       $94.02        
Improvement Costs/Lot         $19,500        $17,122      $15,490      $15,955      $15,964     $16,456      $16,950       
Construction Costs/Ft.         $49.00         $50.00       $51.00       $52.00       $53.00      $54.59       $56.23        
Marketing/Sales Costs           6.20%
Transfer Costs                  0.80%
G&A Costs                       8.00%
Discount Rate                   0.00%
Inflation Rate                  3.00%
Interest Rate                   9.00% 70% Utilization
</TABLE> 

<TABLE> 
<S>                           <C>           <C>          <C>  
Lots to Develop                                                
Beginning Year                                                 
Avg. Sq. Footage/Unit           1,625        1,625        1,625 
Sales Price/Ft.                $96.84       $99.74      $102.73
Improvement Costs/Lot         $17,458      $17,982      $18,521
Construction Costs/Ft.         $57.91       $59.65       $61.44 
Marketing/Sales Costs          
Transfer Costs                 
G&A Costs                      
Discount Rate                  
Inflation Rate                 
Interest Rate                  
</TABLE> 

DISCOUNTED CASH FLOW ANALYSIS FOR DEVELOPMENT OF 2,055 OF A POSSIBLE 4,500 HOMES
BY CAPITOL HOMES

<TABLE> 
<S>                             <C>            <C>          <C>          <C>          <C>         <C>          <C>         
Year                                     1             2            3            4            5           6            7           
Units Developed                         90            165          200          200          200         200          250         
Avg. Sales Price                   130,000        135,996      138,954      141,473      144,008     148,328      152,778     
Gross Sales                     11,700,000     22,439,381   27,790,750   28,294,500   28,801,500  29,665,545   38,194,389  
Lot Premiums                       234,000        448,788      555,815      565,890      576,030     593,311      763,888     
Gross Revenues                  11,934,000     22,888,169   28,346,565   28,860,390   29,377,530  30,258,856   38,958,277  
                                                                                                                           
Expenses:                                                                                                                  
Lot Improvments                  1,755,000      2,825,130    3,098,000    3,190,940    3,192,800   3,291,200    4,237,420   
Construction Costs               7,166,250     13,406,250   16,575,000   16,900,000   17,225,000  17,741,750   22,842,503  
Marketing/Sales Costs              725,400      1,391,242    1,723,027    1,754,259    1,785,693   1,839,264    2,368,052   
Transfer Costs                      93,600        179,515      222,326      226,356      230,412     237,324      305,555     
G&A Costs                          936,000      1,795,151    2,223,260    2,263,560    2,304,120   2,373,244    3,055,551   
Interest Costs                     621,007      1,135,671    1,379,464    1,408,334    1,431,481   1,474,590    1,898,535   
Total Expenses                  11,297,257     20,732,959   25,221,077   25,743,449   26,169,506  26,957,372   34,707,616  
Net Profit                         636,743      2,155,210    3,125,488    3,116,942    3,208,024   3,301,484    4,250,661   
                                                                                                                           
Net Cash Flow                      636,743      2,155,210    3,125,488    3,116,942    3,208,024   3,301,484    4,250,661   
Cumulative Cash Flow               636,743      2,791,954    5,917,442    9,034,383   12,242,407  15,543,891   19,794,552   
</TABLE> 

<TABLE>
<S>                               <C>          <C>          <C>                        <C>
                                                                                              Totals
Year                                       8            9           10                        ------
Units Developed                          250          250          250                         2,055
Avg. Sales Price                     157,361      162,082      166,944                      $147,792
Gross Sales                       39,340,221   40,520,427   41,736,040                  $308,482,754
Lot Premiums                         786,804      810,409      834,721                    $6,169,655
Gross Revenues                    40,127,025   41,330,836   42,570,761                  $314,652,409
                                                                     
Expenses:                                                            
Lot Improvments                    4,364,543    4,495,479    4,630,343                   $35,080,855
Construction Costs                23,527,778   24,233,612   24,960,620                  $184,578,763
Marketing/Sales Costs              2,439,094    2,512,267    2,587,634                   $19,125,931
Transfer Costs                       314,722      324,163      333,888                    $2,467,862
G&A Costs                          3,147,218    3,241,634    3,338,883                   $24,678,620
Interest Costs                     1,955,491    2,014,156    2,074,580                   $15,393,309
Total Expenses                    35,748,845   36,821,310   37,925,950                  $261,325,340
Net Profit                         4,378,180    4,509,526    4,644,812                   $33,327,070
                                                                     
Net Cash Flow                      4,378,180    4,509,526    4,644,812                   $33,327,070
Cumulative Cash Flow              24,172,732   28,682,258   33,327,070 
</TABLE> 

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Estimated partial build out               10 Years
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Term of Cash Flow/Years                   10
Present Value of NCF             $33,327,070
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