- 22 -
F. Petitioner's Contentions
1. The Sentinel EPE Recycler
Petitioner contends that he was interested in the Sentinel
EPE recycler "within the context of an investment opportunity".
In this regard, petitioner further contends that he determined
that the effect of rising oil prices in the plastics industry
would make recycling expanded polyethylene a profitable activity
and that, because plastic is an oil derivative and further
because the United States was experiencing an oil-crisis in 1981,
the recycled expanded polyethylene would be a valuable commodity.
Petitioner contends that he made financial projections in
order to determine the annual cash flow that he could expect from
a Sentinel EPE recycler. In this regard, petitioner contends
that in calculating his income stream, he assumed the following:
(1) The machine could process between 200 and 400 pounds of
recycled expanded polyethylene per hour for 7,000 hours per year;
and (2) the price of oil would continue to rise, increasing the
price of polyethylene resin, such that petitioner would profit 20
to 30 cents per pound. From this calculation, petitioner
contends that he concluded that he could purchase a Sentinel EPE
recycler and reasonably expect to make a profit.
2. The Sentinel EPS Recyclers
Petitioner contends that he was interested in recycling
expanded polystyrene for two reasons: (1) To solve his expanded
polystyrene disposal problem; and (2) to make a profit. In this
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011