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experienced in the appraisal of all kinds of utility properties,
including hydroelectric plants. Mr. Moody has opinions as to the
market values of (1) the bill of sale assets and (2) an undivided
50-percent interest therein. He is of the opinion that, as of
December 17, 1987, the market values of the bill of sale assets
and of an undivided 50-percent interest therein were $65,000,000
and $32,500,000, respectively.
Mr. Moody arrived at his opinions by determining the
reproduction cost of the bill of sale assets to be $64,879,102.
He also applied an earnings analysis to the income stream that
the bill of sale assets (in conjunction with certain other assets
of THP) could have been expected to produce. He determined that
the present value of such income stream was $73,261,609.
Mr. Moody determined the reproduction cost of the bill of
sale assets as follows:
Cost of AWP stock $10,500,000
New construction 28,566,497
Subtotal 39,066,497
Turnkey fee (15%) 5,860,000
Other costs1 9,142,605
Total construction costs 54,069,102
Developer's profit (20%) 10,810,000
Total cost indicator $64,879,102
1Construction interest, financing, and legal costs,
administrative and general costs, and contingency costs.
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