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appraiser, or any other person about the fact that the
Appraisal is wrong on its face.
Furthermore, the failure of the Appraisal to set forth
the residual value of the equipment upon expiration of the
master leases is a serious omission because, as discussed
above, the economic return on the investment to the
unitholders depends primarily upon the residual value of
the equipment at that time and not upon expiration of the
initial user leases. As petitioner testified:
the only way to make a profit in this trans-
action, is to sell the Equipment at the end of
the lease term [in 1990]; and that's what I was
trying to do in becoming an investor in Roscrea
Trust.
Before expiration of the master leases in 1990, the
unitholders could receive fixed rents, equivalent in amount
to the payments that the trust was obligated to make under
the Trust Note, and a share of contingent rent. They could
not realize the residual value of the equipment until after
expiration of the 96-month master leases. By failing to
provide the residual value of the equipment upon expiration
of the master leases, the Appraisal is of limited assis-
tance in computing the economic return on the investment
to the unitholders. Once again, there is no evidence in
the record that petitioners, the Trustee, or any of the
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