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5 Years Gross Sales Loss Factor Operating Income Paid to Seller Net to Buyer Discount Present Value Present Value
267,000.00 20% Adjusted Sales 40% 25% 15% Factor Paid to Seller Net to Buyer
Year 1 267,000.00 0.800 213,600.00 85,440.00 53,400.00 32,040.00 0.892857 47,678.56 28,607.14
1267,000.00
2 0.600 160,200.00 64,080.00 40,050.00 24,030.00 0.797194 31,927.62 19,156.57
2267,000.00
3 0.400 106,800.00 42,720.00 26,700.00 16,020.00 0.711780 19,004.53 11,402.72
3267,000.00
4 0.200 53,400.00 21,360.00 13,350.00 8,010.00 0.635518 8,484.17 5,090.50
5 267,000.00 0.000 -- -- -- -- 0.567427 -- --
534,000.00 213,600.00 133,500.00 80,100.00 107,094.88 64,256.93
10 Years Gross Sales Loss Factor Operating Income Paid to Seller Net to Buyer Discount Present Value Present Value
267,000.00 10% Adjusted Sales 40% 25% 15% 40% Factor Paid to Seller Net to Buyer
Year 1 267,000.00 0.900 240,300.00 96,120.00 60,075.00 36,045.00 0.892857 53,638.38 32,183.03
1267,000.00
2 0.800 213,600.00 85,440.00 53,400.00 32,040.00 0.797194 42,570.16 25,542.10
2267,000.00
3 0.700 186,900.00 74,760.00 46,725.00 28,035.00 0.711780 33,257.92 19,954.75
3267,000.00
4 0.600 160,200.00 64,080.00 40,050.00 24,030.00 0.635518 25,452.50 15 271.50
4267,000.00
5 0.500 133,500.00 53,400.00 -- 53,400.00 0.567427 -- 30,300.60
5267,000.00
6 0.400 106,800.00 42,720.00 -- 42,720.00 0.506631 -- 21.643.28
7 267,000.00 0.300 80,100.00 32,040.00 -- 32,040.00 0.452349 -- 14,493.26
7267,000.00
8 0.200 53,400.00 21,360.00 -- 21,360.00 0.403883 -- 8,626.94
8267,000.00
9 0.100 26,700.00 10,680.00 -- 10,680.00 0.360610 -- 3,851.31
9267,000.00
10 -- (--) -- (--) (--) 0.321973 -- --
1,201,500.00 480,600.00 200,250.00 280,350.00 154,918.96 171,866.77
15 Years Gross Sales Loss Factor Operating Income Paid to Seller Net to Buyer Discount Present Value Present Value
267,000.00 6.70% Adjusted Sales 40% 25% 15% 40% Factor Paid to Seller Net to Buyer
Year 1 267,000.00 0.933 249,111.00 99,644.40 62,277.75 37,366.65 0.892857 55,605.13 33,363.08
2 267,000.00 0.866 231,222.00 92,488.80 57,805.50 34,683.30 0.797194 46,082.20 27,649.31
2267,000.00
3 0.799 213,333.00 85,333.20 53,333.25 31,999.95 0.711780 37,961.54 22,776.93
3267,000.00
4 0.732 195,444.00 78,177.60 48,861.00 29,316.60 0.635518 31,052.04 18 631.23
4267,000.00
5 0.665 177,555.00 71,022.00 -- 71,022.00 0.567427 -- 40,299.79
5267,000.00
6 0.598 159,666.00 63,866.40 -- 63,866.40 0.506631 -- 32.356.71
6267,000.00
7 0.531 141,777.00 56,710.80 -- 56,710.80 0.452349 -- 25,653.09
7267,000.00
8 0.464 123,888.00 49,555.20 -- 49,555.20 0.403883 -- 20,014.51
8267,000.00
9 0.397 105,999.00 42,399.60 -- 42,399.60 0.360610 -- 15,289.72
9267,000.00
10 0.330 88,110.00 35,244.00 -- 35,244.00 0.321973 -- 11,347.62
10267,000.00
11 0.263 70,221.00 28,088.40 -- 28,088.40 0.287476 -- 8,074.74
11267,000.00
12 0.961 52,332.00 20,932.80 -- 20,932.80 0.256675 -- 5,372.93
12267,000.00
13 0.129 34,443.00 13,777.20 -- 13,777.20 0.229174 -- 3,157.38
13267,000.00
14 0.062 16,554.00 6,621.60 -- 6,621.60 0.204620 -- 1,354.91
15 267,000.00 -- -- -- -- -- 0.182696 -- --
1,859,655.00 743,862.00 222,277.50 521,584.50 170,700.91 265,341.95
Set out below is a summary of Mr. Meade's three cash-flow
analyses which show, on a present value basis, the total
operating income to be derived from the seller's clients,
the portion of the operating income that would be paid to
the seller, and the net amount to be derived by petitioner:
Total Operating Income Amount Paid to Seller Net to Buyer
5 years $171,351.81 $107,094.88 $64,256.93
10 years 326,785.73 154,918.96 171,866.77
15 years 436,042.86 170,700.91 265,341.95
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