James D. Barber and Betty L. Barber - Page 18




                                       - 18 -                                         
          Lindstrom also reported that various equipment companies, such as           
          the Cumberland Engineering Division of John Brown Plastics                  
          Machinery, were willing to provide customized recycling programs            
          to companies at a minimum cost of $50,000.                                  
               Lindstrom found that the Sentinel EPS recycler could process           
          between 100 and 200 pounds of plastic per hour.                             
               Lindstrom observed a Sentinel EPS recycler in operation and            
          was allowed to inspect the machine closely.  Lindstrom estimated            
          the manufacturing cost of the Sentinel EPS recycler to be                   
          approximately $20,000 and the market value of the machine to be             
          approximately $25,000.                                                      
          E.   Fair Market Value of the Recyclers                                     
               At all relevant times, the fair market value of the Sentinel           
          EPS recycler did not exceed $50,000 per machine.7                           
          F.   Petitioners and Their Introduction to Whitman                          
               Jim Barber (petitioner) is a well-educated individual,                 
          having graduated from the University of Michigan in 1957 with a             
          bachelor of science degree in mechanical engineering.  For most             
          of his career, petitioner has worked in the field of industrial             
          automation.  In 1982, petitioner was employed by the Bendix                 
          Corp., and he was about 48 years old.                                       

               7  Our finding is based on the expert reports and testimony            
          of Grossman and Lindstrom, as stipulated by the parties.  We note           
          that petitioners independently stipulated that the Sentinel EPS             
          recycler had a maximum value of between $30,000 to $50,000 per              
          machine.  That latter stipulation is consistent with our finding.           





Page:  Previous  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  Next

Last modified: May 25, 2011