Pope & Talbot, Inc., & Subsidiaries - Page 14

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          sales for differences in location (i.e., proximity to shipping or           
          delivery points and desirability of location) and concluded that            
          the total gross value (before discount) of the bare land was                
          $7,770,699.                                                                 
               Mr. Prochnau took the sum of the gross values for each of              
          the components (i.e., merchantable timber, reproduction timber,             
          and bare land) and determined an indicated value under two                  
          different approaches--the comparable sales approach and the                 
          income approach.  Under the comparable sales approach, Mr.                  
          Prochnau utilized 33 comparable sales of between 20 and 53,916              
          acres that occurred between December 1983 and September 1991.               
          For each comparable sale, Mr. Prochnau calculated a comparable              
          sales ratio equal to the actual sale price divided by the gross             
          value of the components as estimated by Mr. Prochnau.  The                  
          comparable sales ratio is relative to the term "discount" or                
          "premium" commonly referred to in appraisals.  He then performed            
          a regression analysis to plot the variation of comparable sales             
          ratios over the range of comparable sale sizes.  The comparable             
          sales ratio chosen by Mr. Prochnau for each tract of the subject            
          property was between .7549 and .9957, indicating a discount of              
          between .43 and 24.51 percent.  Applying the appropriate                    
          comparable sales ratio to the total gross value of each tract of            
          the subject property, Mr. Prochnau calculated an indicated value            
          of $63,980,100 for the subject property under the comparable                
          sales approach.                                                             




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