Ernest I. Korchak - Page 11

                                       - 11 -                                         
          virgin resin would remain at then-current prices per pound or               
          that the recycled pellets would be as marketable as virgin resin            
          pellets; and (9) certain potential conflicts of interest existed.           
          The POM also stated on its first page that “THIS OFFERING                   
          INVOLVES A HIGH DEGREE OF RISK” and repeatedly urged potential              
          investors to seek independent advice and counsel before investing           
          in Madison.                                                                 
               The POM stated that the projected tax benefits for the                 
          initial year of investment for an investor contributing $50,000             
          would include investment and energy tax credits in the aggregate            
          amount of $77,000, plus tax deductions in the amount of $38,610.            
          The POM also stated that, assuming each recycler processed an               
          average of 1,872,000 pounds of polystyrene scrap per year and               
          the market price of virgin pellets increased approximately 11               
          percent annually over the term of the venture, the net projected            
          profits to the partnership through 1992 would equal $2,873,144.13           


               13The POM projected net profits over the life of the venture           
          as follows:                                                                 
                                   1982     -0-                                       
                                   1983   $40,365                                     
                                   1984   185,679                                     
                                   1985   213,531                                     
                                   1986   245,560                                     
                                   1987   282,394                                     
                                   1988   324,754                                     
                                   1989   373,467                                     
                                   1990   429,487                                     
                                   1991   493,909                                     
                                   1992   283,998                                     





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011