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Fair Market Value
Equipment Nov. 1, 1994 Aug. 31, 1995 Sept. 28, 1995
K-Mart $1,651,272 $1,093,247 $1,041,105
Shared 2,396,764 1,394,450 1,188,847
Daley further opined that, as of September 28, 1995, the K-
Mart and Shared equipment would have the following estimated
residual values on the dates shown below and could be expected to
produce no rental income during the purported over lease residual
interest periods, as follows:
Estimated Residual Value
3-1-97 7-1-97
or or Over Lease Int. Pds.1
Equipment 4-1-97 8-1-97 5-1-00 Proj. Rental Income
K-Mart -- $378,486 $194 -0-
Shared $120,920 -- -0- -0-
1The over lease periods are: (1) From Nov. 1, 2002, through
Feb. 28, 2004, in the case of the K-Mart equipment, and (2) from
May 1, 2000, through Feb. 28, 2002, in the case of the Shared
equipment.
b. Evaluation and Comparison of the Experts
In many respects, the experts’ reports were terse and
lacking in adequate detail and explanation. In particular,
Svoboda’s opinions as to fair market value and projected future
rental income were premised on questionable and purely
speculative judgments. We found Daley’s report to be short on
some details, but more objective and less speculative.
Although Svoboda agreed with Daley that the Shared computer
equipment would have no value by the start of the residual lease
period, Svoboda claimed “it would be reasonable” to expect that
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