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initial user leases or the residual values of the equipment
upon expiration of the 96-month term of the master leases.
Presumably, Mr. Wilkins did not intend to say that the
residual value of the equipment is the same on both dates.
Each of the values set forth in paragraph 2 of the
Appraisal is accompanied by a month and year which appear
to be the month in which each of the initial user leases
terminates. From that, we assume that the values set out
in paragraph 2 are the "residual" values of the equipment
upon the expiration of the initial user leases. Thus, it
appears that the Appraisal fails to provide residual values
for the equipment upon expiration of the 96-month terms of
the master leases.
By failing to set forth the residual value of the
equipment upon expiration of the master leases, it is
evident that Mr. Wilkins' Appraisal is based on a mistaken
premise and is wrong. After setting forth the anticipated
"residual" values of the equipment upon expiration of the
initial user leases, Mr. Wilkins discounts those values in
order to arrive at their present value in 1982, as follows:
Present value, residual: Mar. 1987 (Exh A) - $519,763
Nov. 1986 (Exh B) - 112,763
Nov. 1985 (Exh C) - 181,205
June 1985 (Exh D) - 122,657
Total 936,388
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