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failure to consider a hypothetical willing seller of an interest
in the partnership weakens his analysis.
Zitelman's assertion at trial that the fact the lessee is
not a major hotel chain also depresses the value and accordingly
increases the discount rates lacks merit. In light of the
lessee's other options for developing the property, we do not see
the financial success or lack thereof in the hotel business as a
significant risk.
Zitelman's calculations are also inaccurate. First, we
found several errors in the calculations of the partnership's
rental income. Zitelman ignored the appreciation in the fair
market value of the unencumbered land between the valuation date
and January 1, 1993, for purposes of calculating the expected
rent due. Zitelman claimed to be treating the fair market value
of the unencumbered land as appreciating at a rate of 2.6 percent
per year, yet he estimated the value of that land, as of the
valuation date, to be $5,479,883 and used that amount without
adjustment for estimating the rental income for the period of
January 1, 1993, through December 31, 2002. Moreover, Zitelman
calculated the net cash-flow to be received during the period
after decedent's death through December 31, 1992, but he failed
to include any part of that cash-flow in the total values
assigned to decedent's interest. See appendix B. In addition,
Zitelman treated the net cash-flows arising from the lease as
being received upon the last day of the year. The lease
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