Daniel L. and Ingrid N. Carroll - Page 17




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               Lindstrom found that in “average-use situations" the                   
          Sentinel EPE recycler could process 200 pounds of plastic per               
          hour.                                                                       
               Lindstrom observed a Sentinel EPE recycler in operation at             
          PI, and he was allowed to take photographs of it and examine its            
          blueprints.  Based on his observations and study, Lindstrom                 
          estimated that the manufacturing cost of the Sentinel EPE                   
          recycler was approximately $20,000.  Lindstrom concluded that the           
          market value of the Sentinel EPE recycler did not exceed $50,000.           
               Lindstrom also reported that information was available in              
          1981 regarding state-of-the-art foamed plastic recycling                    
          machines.  Lindstrom described several approaches that might have           
          been taken by a layman of average intelligence to obtain such               
          information, even in a small town library.                                  
          E.   Petitioners and Their Introduction to Clearwater                       
               Petitioners acquired a 1.547-percent interest in Clearwater            
          in 1981 for $12,500.                                                        
               Petitioner husband (petitioner) has a bachelor of science              
          degree in chemical engineering.  During college, petitioner was             
          employed during 2 summers by the Scott Paper Company.  There, he            
          became familiar with batch type paper pulp machines used to                 
          process wood chips or recycled paper or cardboard into pulp.                









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