Estate of Charles a. Boratello, Deceased, C. Norman Borgatello and Josephine E. Donnelly, Co-Executors, and C. Norman Borgatello, Successor Trustee to the Charles A. Borgatello Living Trust - Page 21

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                  Another area of disagreement among the experts is the                                
            appropriate duration of the cash-flow period.  Mr. Holden uses a                           
            7-year cash-flow period whereas Mr. Marx uses a 10-year cash-flow                          
            period.  Mr. Holden justifies his 7-year period on the basis of,                           
            inter alia, market uncertainties and the fact that as the cash-                            
            flow period is extended into the future, the analysis becomes                              
            less reliable.  Mr. Holden also notes that real estate markets                             
            tend to flow in 7-year cycles.  Mr. Marx points out that a 10-                             
            year cash-flow period is supported by information from local                               
            brokers and national real estate publications.  Although 7 years                           
            may be a reasonable cash-flow period in some cases, we are                                 
            inclined to follow the trends of the Montecito-Santa Barbara real                          
            estate market.  We find, therefore, that Mr. Marx's estimate of a                          
            10-year cash-flow period is persuasive because it follows more                             
            closely Santa Barbara's real estate norms.                                                 
                  On the basis of the foregoing discussion, we find Mr.                                
            Holden's valuation estimates to be too low and find Mr. Marx's                             
            estimates to be too high.  We believe that $9,600,000 is a                                 
            reasonable estimate of the value of MVN and $5,680,000 is a                                
            reasonable estimate of the value of MVS.  With such values in                              
            mind, we now proceed to value Mr. Borgatello's interest in VIC.                            

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