On August 15, 2007, at 1115 Pacific daylight time, a Cessna R182, N756MN, landed hard at Coeur D'Alene Air Terminal (COE), Coeur D'Alene, Idaho. Moody Bible Institute of Chicago operated the airplane under the provisions of 14 CFR Part 91. The airplane sustained substantial damage. The certified flight instructor (CFI) and two student pilots were not injured. The instructional flight departed Felts Field Airport (SFF), Spokane, Washington, at 1015. Visual meteorological conditions prevailed, and a VFR flight plan had been filed. In a written report to the National Transportation Safety Board, the flight instructor stated that he was demonstrating a simulated engine failure on takeoff for his students. The takeoff from runway 01 had been normal, and the airplane climbed out with the flaps up and the landing gear down. At 100-150 feet above ground level, he initiated the simulated engine out procedure. He reduced the throttle to idle and pitched the nose down to maintain 70 KIAS per manufacturer recommendations. The flight instructor further stated that he sensed a "high sink rate" during the flare, which made him contemplate a go-around. He elected to continue the demonstration and landing. The airplane landed hard on all three landing gears and bounced back into the air. After the airplane settled back on the main landing gears, he realized "the nose gear was not normal." He pulled the mixture control to idle cutoff and held the nose off the ground as long as possible. When the nose began to settle, the propeller was still rotating and contacted the runway surface. The airplane came to rest upright and the instructor secured it before exiting. The airplane sustained substantial damage, including structural damage to the nose landing gear attach points and the firewall. The instructor reported no preimpact mechanical malfunctions or failures with the airplane.