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Ms. Grossman reviewed the September Projections. The
September Projections specifically forecasted that: (1) If
Comdisco exercised an early termination option under the lease, the
partnership would get a pretax return of 9.0 percent, and RD
Leasing would get a pretax return of 6.6 percent and an after-tax
return of 101.5 percent; and (2) if Comdisco exercised a final
termination option under the lease, the partnership would get a
pretax return of 15.1 percent, and RD Leasing would get a pretax
return of 14.0 percent and an after-tax return of 99.5 percent.
A copy of the M&S appraisal report dated September 28, 1993,
was given to Ms. Grossman. CIG provided two additional appraisal
reports, also dated September 28, 1993, one from Manufacturers’
Appraisal Co. (MAC) and the other from Appraisal Resources
International (ARI).
CIG paid for the M&S, MAC, and ARI appraisals.10 Ms. Grossman
was aware that the residual value forecasts of the IBM mainframe
computers in the M&S, MAC, and ARI appraisal reports were higher
than those of industry publishers, such as Daley Marketing Corp.
(DMC), International Data Corp. (IDC), and the Gartner Group. On
the basis of her own experience, Ms. Grossman believed that
forecasts of IDC and the Gartner Group tended to be overly
conservative.
10 According to Ms. Grossman, Ms. Ortmann, Mr. Renner, and
petitioners’ expert Thompson Ryan, it is common for the packager
of a leasing transaction (here, CIG) to pay the appraisal fees.
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