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Q. Sir, you spoke about the particular equip-
ment that you were considering investing in.
Did you reach any conclusions with respect
to the potential useful life of that
equipment?
A. Well, my conclusions were that the useful
life would be in excess of 10 years for
the equipment that was in question.
Mr. Biggs did not explain whether his judgment regarding
the useful life of the equipment "in excess of 10 years"
applied to each piece of equipment or was an average of
some kind. He also did not state when the useful life
began. For example, a 10-year useful life of the IBM 3081
which, according to his testimony, was introduced in 1980
would mean that the end of the useful life was in 1990,
the expiration of the master leases. This suggests that
the IBM 3081 would have little or no residual value upon
expiration of the master leases.
Similarly, Mr. Atkins testified regarding the
"economic life" of the IBM 3081 as follows:
Q. Can you put a--Did you determine or have an
opinion about the length of the economic
life that could be forecast for this IBM
equipment; again focusing on the IBM 3081?
A. I think the 3081 will have a life cycle of
about 10 years in the market place. That
does not mean that all of them sold will be
there 10 years later, but there will be
enough in the market place there. They'll
still be on lease.
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