Table of Contents and Section 1 – General Service Boxcars

Table of Contents

Introduction and Use of The Guide 1

Overview of the Market for Railroad Equipment

Historical Overview 7 Supply and Demand Trends, 1975 – 2007 7 Supply and Demand Trends, 2008 – 2010 17 Supply and Demand Trends, 2011 – 2017 18 RS Railcar Market Index and Railcar Rental Rate Index 22 Trends in Equipment Ownership 22 Economic Useful Lives of Railcars and Locomotives 24 Salvage and Scrap Values 25

Railcar Evaluations

Section 1 - General Service Boxcars 27 Section 2 - Small Cubic Capacity Covered Hopper Cars 41 Section 3 - General Service Covered Hopper Cars, Grain Service 55 Section 4 - Specialty Covered Hopper Cars 71 Section 5 - Pressure Differential Covered Hopper Cars 85 Section 6 – Mill Gondola and Coil Steel Gondola Cars 97 Section 7 - Open Top Hopper Cars, Coal Service 111 Section 8 - High Side Gondola Cars, Coal Service 125 Section 9 - Center Beam and Bulkhead Flatcars 139 Section 10 - Double Stack Intermodal Container Cars 153 Section 11 - Tank Cars, General Service 169 Section 12 - Tank Cars, High Pressure 187 Section 13 - Tank Cars, Acid Service 199 Section 14 - Autoracks 211

Overview of the Locomotive Market 225 Locomotive Evaluations

Section 15 - Four Axle, Low Horsepower Locomotives 239 EMD SW1500 EMD MP15

RailSolutions, Inc.

Section 16 - Four Axle, Medium and High Horsepower Locomotives 243 EMD GP9 EMD GP38 EMD GP38-2 EMD GP40 EMD GP40-2

Section 17 - Six Axle, High Horsepower Locomotives 251 EMD SD40-2

Section 18 - Six Axle, High Horsepower, DC Traction 255 Powered Locomotives GE ES44DC EMD SD70M-2 GE Dash 9-44CW EMD SD70M

Section 19 - Six Axle, High Horsepower, AC Traction 263 Powered Locomotives GE ES44AC EMD SD70ACe GE AC4400CW EMD SD70MAC GE ES44C4 Glossary 271

RailSolutions, Inc. Overview 275

RailSolutions, Inc. Market for General Service Boxcars Historical Overview The general service boxcar has been a mainstay of the industry’s equipment fleet ever since railroads began hauling freight. Until railcars became more specialized after World War II, boxcars were used to haul virtually every type of commodity with the exception of coal and bulk liquid chemicals. Over the past 30 years, supply and demand dynamics in the boxcar market have been used by some analysts as an indicator of the general health of the overall rail equipment market. Since 1985, however, the volume and types of commodities moved in boxcars, the number of boxcars in service and the boxcar shipments are that they are usually loaded at ownership profile of the North American boxcar one point but are shipped to many different points fleet changed significantly. in non-unit train service averaging one load per car per month or less. Additionally, much of the In the mid-1970s, the total number of boxcars in existing infrastructure for loading and unloading the North American fleet exceeded 400,000 units; boxcars is based on the 50’, 70-ton car originally however, as railroads lost significant volumes of produced in the 1970s which is less efficient and general merchandise traffic to over-the-highway obsolete in the eyes of many railroads. truck carriers, the size of the boxcar fleet declined to less than 110,000 units by 2017. Over the past two The boxcar fleet in place today is composed of decades, railroads have directed marketing efforts many cars with different lengths, heights, load toward retaining existing traffic and regaining capacities and door configurations which makes certain types of general merchandise business which maintaining and more importantly, providing the can be moved efficiently and profitably by rail. correct car to a shipper, a challenge. Many of the railroads are promoting a new standardized car A significant volume of general merchandise traffic to boxcar shippers that is more efficient but does that now moves by rail is no longer moved in not address customers’ concerns about existing boxcars, but in intermodal containers and trailers. infrastructure and size restrictions at the loading Boxcars are currently utilized in four primary and unloading points. The only notable additions markets: paper products (both finished and scrap to the boxcar fleet in recent years have been by paper), lumber products (primarily wood pulp TTX which, as mentioned previously, is owned by and cut lumber), auto parts (which are shipped in a consortium of railroads and may have different equipped boxcars) and food products (packaged, criteria for investment than other investors. perishable and frozen foods, which are shipped in refrigerated boxcars). Supply and Demand Trends – General Service Boxcars A major issue for boxcar investment is the return on investment associated with the equipment. Since the mid-1970s, the ownership profile of Boxcars generally move lower revenue producing the boxcar fleet has shifted from primarily Class commodities in merchandise service meaning that I railroad ownership to a mix of Class I, regional revenue per carload and carloads per month are and short line railroads and private (leasing low relative to many other car types. The nature of company) ownership. A significant factor in this

27 RailSolutions, Inc. General Service Boxcars

shift of ownership is directly related to certain New deliveries of boxcars averaged approximately artificial investment incentives (investment tax 3,500 units annually during the period from 1996 credits and incentive per diem) that existed in the to 2006. Compared to the number of newly mid and late 1970s which helped fuel a period of manufactured railcars in other general service massive overbuilding between 1977 and 1980. A classifications, the boxcar production numbers majority of the boxcars built during this period were modest. We believe that the relatively high were 50-foot, 70-ton general service boxcars that cost of new boxcars during the peak production were placed in free-running service by regional years of 1996 to 1998 and 2004 to 2006 was one and short line railroads and financed by private of the major factors in explaining the low number owners and leasing companies. of orders for new boxcars.

The massive overbuilding of the late 1970s Overall demand for unequipped and equipped created an oversupply of boxcars that existed general service boxcars is tied primarily to rail until the mid-1990s. During the period from 1982 traffic levels in pulp and paper markets, and to 1992, orders for newly manufactured general in lumber and wood products markets. Since service boxcars were virtually nonexistent. By the recession of 1991, rail traffic levels in those the mid-1990s, many shippers began to recognize markets have been somewhat volatile with traffic the deteriorating state of the boxcar fleet, and peaking in 1994 (which was considered a banner as a result, a modest level of demand for new year for rail freight traffic in general). Boxcar boxcars began to surface. Over the past 15 years, traffic declined during the period between 1995 the demand for newly manufactured boxcars has and 1998, before increasing again in 1999. been focused primarily on 50-foot and 60-foot, 108-ton (286,000 pounds gross rail load), high By late 2000, the softening U.S. economy began capacity cars for use in high grade (Class A) to take its toll on rail traffic of all types, including paper service. general merchandise, paper and lumber traffic. Traffic volumes for those commodities typically Boxcar fleet statistics include several variations carried in boxcars posted healthy growth in 2004 of car lengths and interior configurations, and and 2005 along with almost every other sector are usually classified as equipped or unequipped served by rail. Demand for equipped boxcars used cars. Historically, the equipped versus unequipped in auto parts service is tied directly to the fortunes designation usually referred to the type of interior of the automobile manufacturing industry, and as lading securement devices installed. The standard might be expected, has followed the same trends practice among car owners has been to assign described above. equipped boxcars to specific traffic moves known as dedicated services rather than using those cars Another sector of the boxcar market which, until in free-running or general services. In order to recently, received relatively little attention is the control the movement and availability of boxcars, market for refrigerated boxcars. Beginning in the many shippers and railroads have redesignated a 1950s, the transportation of packaged and frozen significant number of boxcars from unequipped to foods shifted from rail to highway and the demand equipped status (regardless of those cars’ actual for refrigerated boxcars posted steady declines interior configuration). By the mid-1990s, the (both insulated cars used in beer and beverage equipped status of boxcars became more of an services and mechanically refrigerated cars used indicator of the type of service in which cars are in packaged and frozen food services). Virtually employed rather than the configuration of the car. no new mechanically refrigerated boxcars entered service between 1980 and 2000.

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In the early 2000s, both BNSF and Union Pacific Demand for newer, 100-ton and 105-ton boxcars recognized that some potential exists to grow the began to improve in early 2011 as rental rates and traffic base in this sector and to ship packaged utilization rates posted respectable gains. Virtually and frozen foods profitably in long haul corridors no orders for newly manufactured boxcars were with a high level of equipment utilization (more placed between 2007 and early 2010. In late 2010, than two loaded trips per month). Both railroads TTX placed an order for a significant number of took delivery of new, high capacity mechanically boxcars that were delivered in mid and late 2011. refrigerated boxcars in the early 2000s. The newest After that one noteworthy order, very few orders generation of mechanically refrigerated boxcars for new boxcars were placed in 2012 and 2013. It is relatively sophisticated (equipped with GPS should be noted that TTX may be one of the few and advanced cooling systems) and are also quite boxcar fleet owners that can successfully deploy expensive at $220,000 to $260,000 per car. Since large numbers of new boxcars given current 2003, no significant orders for new refrigerated market conditions. boxcars have been placed, and we doubt that any significant number of new cars of this type will be More recently, paper and forest products traffic built in the foreseeable future. ended 2014 with a gain of roughly 3.5 percent over 2013 volumes. In late 2014, as market conditions Current Market Conditions improved, orders for more than 3,000 new boxcars were placed for delivery in 2015 and 2016. Since Market conditions in the general service boxcar then, traffic volumes have remained flat. Orders for sector began to deteriorate at a steady pace in new boxcars placed in 2017 totaled less than 300 late 2006. Given general economic conditions, units and deliveries were slightly less than 4,000. and more specifically, trends in the paper, forest products and auto parts sectors, it is no surprise RS believes that traffic volumes in the paper and that boxcar demand declined at a startling rate. forest products markets will show slow growth, Rail traffic volumes in these markets declined by but will probably not return to pre-recession levels almost 30 percent over the four-year period from anytime soon. On the supply side, we expect that 2006 through early 2010. large numbers of older, obsolete 70-ton capacity cars will be retired within the next three to five A significant number of the approximately 400,000 years. RS has recently revised estimates of current railcars that were in storage, as of January 1, 2010, and future fair market values for newer, 105-ton were boxcars and other car types used in lumber and boxcars to reflect expected modest improvements automobile manufacturing-related services. Rental in market conditions and increasing replacement rates on leased boxcars and used boxcar values costs of newly manufactured 50-foot and 60-foot declined by more than 40 percent between 2006 general service boxcars. and 2010. Rental rates and values of older 50-foot, 70-ton capacity boxcars posted the most dramatic declines. Perhaps the most obvious indicator of market weakness was the huge drop in the number of orders for newly manufactured general service boxcars. The total number of new boxcars delivered in the four-year period from 2007 through the end of 2010 was less than 1,500 units.

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Table 1.1 Overview of Significant Trends and Events

1977 - 1980 Boxcar Building Boom A boxcar shortage in the 1960s and early 1970s turned into a glut by the early 1980s. Thousands of newly manufactured 50-foot, 70-ton boxcars entered service in the late 1970s, many of which were acquired by private investors and shortline railroads for use in free-running service, earning car hire revenue under prescribed rates.

1982 - 1985 Oversupply of Boxcars By 1982, the oversupply of boxcars had become painfully obvious. Virtually no new building of boxcars would occur again until the early 1990s.

1994 Deprescription of Car Hire Rates Prescribed car hire rates were phased out over a ten-year period from 1994 to 2004. Under deprescription, all car hire rates are negotiated under bi-lateral agreements between railroads.

1994 - 1995 Introduction of 286,000-Pound Gross Rail Load Boxcars Virtually all of the boxcars built new since the late 1980s were 50-foot and 60-foot, 100-ton and 105-ton capacity cars. Even with the return of the boxcar market to equilibrium and the introduction of 286k GRL cars, the demand for newly manufactured boxcars remains subdued when compared to other general service car types.

2006 - 2010 Declining Traffic Volumes and Declining Demand Paper, forest products and auto parts traffic moved by rail posted steady declines beginning in late 2006. Market demand for 50-foot, 70-ton boxcars and newly manufactured boxcars (263,000 and 286,000 pounds gross rail load) declined at a rapid pace beginning in early 2007. Virtually no orders for newly manufactured boxcars were placed in 2008 and 2009

2011 - 2018 Slow Improvement in Market Conditions Market demand for 100-ton – 108-ton boxcars showed some improvement between 2011 and 2018, even though traffic levels in those sectors served by rail and moved in boxcars remained well below pre-recession levels.

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Table 1.2 Current Ownership and Fleet Age Profile

US Ownership of Boxcars

BoxBoxcars Cars 2018 Fleet Ownership 2017 Ownership Breakdown (North America)

Class 2/3 6% Owner # Cars Class 1 33% TTX 24,575 TTX GATX Rail 16,814 Large Lessors 22% Norfolk Southern 8,529 29% CIT Rail 7,987 Canadian National 7,783 CSXT 6,314 Other 38,437

Shippers 1% Other Lessors Total 110,439 9% Source: AllTranstek, FTR, Umler - 110,439 cars

Fleet Age Distribution Boxcars 2018Box Age CarsProfile Number of Units 2018 Age Profile 40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0 0-5 6-10 11-15 16-20 21-21 26-30 31-35 36-40 >40

Source: AllTranstek, FTR, Umler - 110,439 cars Average Age of the Fleet: 29 Years

Source: AllTranstek, FTR, Umler - 110,439 cars

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Table 1.3 Carloading and Utilization Information

Carloads (000s)

1,800 All Other 1,600

1,400 Pulp or Pulp Mill Prod ucts ( STC C 1,200 261) Waste or Scrap 1,000 (STCC 402) 800 Paper (STCC 262) 600

400 Motor Vehicles or Equipment (STC C 200 371)

0 Fibreboard, Paperboard, Pulpboard (STCC

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Table 1.4a Fibreboard, Paperboard, Pulpboard Summary

Carloadings Originated

Carloads (000s) Source: FTR; Copyright 2018 500200 450180 400160 350140 300120 250100 20080 15060 10040 5020 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: FTR; Copyright 2018 Carloadings

Year Thousands % Change 1998 424 -- 1999 455 7.4% 2000 470 3.3% 2001 350 -25.6% 2002 360 2.9% 2003 362 0.5% 2004 356 -1.7% 2005 341 -4.1% 2006 335 -1.8% 2007 319 -4.8% 2008 314 -1.5% 2009 243 -22.6% 2010 250 2.8% 2011 274 9.7% 2012 276 0.5% 2013 280 1.5% 2014 280 0.2% 2015 pre. 275 -2.1% 2016 pre. 258 -6.1% 2017 est. 256 -0.5%

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Table 1.4b Paper Traffic Summary

Carloadings Originated

Carloadings

Year Thousands % Change 1998 134 -- 1999 137 2.1% 2000 148 7.6% 2001 182 23.5% 2002 179 -2.0% 2003 188 5.5% 2004 176 -6.8% 2005 171 -2.4% 2006 183 6.9% 2007 163 -11.0% 2008 148 -8.9% 2009 102 -31.2% 2010 117 14.7% 2011 115 -1.5% 2012 124 7.6% 2013 126 1.4% 2014 126 0.2% 2015 pre. 124 -2.1% 2016 pre. 116 -6.1% 2017 est. 115 -0.5%

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Table 1.5 Historical New Railcar Invoice Prices

Year Approximate Estimated Average General Description Number of Railcars Invoice Cost Built Built Per Railcar

1988 50 Feet, 100 Tons (263k GRL) 300 $60,000 1989 50 Feet, 100 Tons (263k GRL) 400 62,000 1990 50 Feet, 100 Tons (263k GRL) 400 62,000 1991 50 Feet, 100 Tons (263k GRL) 100 62,000 1992 50 Feet, 100 Tons (263k GRL) 100 62,000 1993 50 Feet, 100 Tons (263k GRL) 1,400 63,000 1994 50 Feet, 100 Tons (263k GRL) 1,300 64,000 1995 60 Feet, 105 Tons (286k GRL) 1,600 65,000 1996 60 Feet, 105 Tons (286k GRL) 2,800 65,000 1997 60 Feet, 105 Tons (286k GRL) 1,200 65,000 1998 60 Feet, 105 Tons (286k GRL) 3,600 65,000 1999 60 Feet, 105 Tons (286k GRL) 5,100 70,000 2000 60 Feet, 105 Tons (286k GRL) 7,700 70,000 2001 60 Feet, 105 Tons (286k GRL) 5,400 65,000 2002 60 Feet, 105 Tons (286k GRL) 1,300 65,000 2003 60 Feet, 105 Tons (286k GRL) 4,200 68,000 2004 60 Feet, 105 Tons (286k GRL) 4,600 72,000 2005 60 Feet, 105 Tons (286k GRL) 2,900 80,000 2006 60 Feet, 105 Tons (286k GRL) 1,500 84,000 2007 60 Feet, 105 Tons (286k GRL) 200 90,000 2008 60 Feet, 105 Tons (286k GRL) 200 90,000 2009 60 Feet, 105 Tons (286k GRL) 400 N / A 2010 60 Feet, 105 Tons (286k GRL) 400 N / A 2011 60 Feet, 105 Tons (286k GRL) 1,400 108,000 2012 60 Feet, 105 Tons (286k GRL) 2,450 108,000 2013 60 Feet, 105 Tons (286k GRL) 1,800 112,000 2014 60 Feet, 105 Tons (286k GRL) 1,000 114,000 2015 60 Feet, 105 Tons (286k GRL) 1,200 120,000 2016 60 Feet, 105 Tons (286k GRL) 3,000 114,000 2017 60 Feet, 105 Tons (286k GRL) 1,500 116,000

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Table 1.6 Historical Estimates of Fair Market Value, Railcars Built New in 1995

Estimated Then-Current FMV Then-Current FMV as a % of OEC

$70,000 100.00% $60,000 80.00% $50,000

$40,000 60.00%

$30,000 GRAPH NOT UPDATED 40.00% $20,000 20.00% $10,000

$0 0.00% 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Table 1.7 Historical Rental Rate Data, Railcars Built New in 1995

Estimated Estimated Then-Current FMN Then-Current FMN Rental Rates Rental Rates as a % of OEC

$800 1.20% $700

$600 1.00%

$500 0.80% $400 0.60% $300 0.40% $200

$100 0.20%

$0 0.00% 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

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Table 1.8 Historical Residual Values, General Service Boxcars - 50-60 Feet, 100-108 Tons

Estimated Estimated FMV as a Avg. Age Original Fair Market Value % of Year Years Built (Years) Cost Per Car Per Car Original Cost

1998 1977 - 1981 20 $48,000 $20,000 - 22,000 42% - 46%

1999 1978 - 1982 20 48,000 19,000 - 21,000 40% - 44%

2000 1979 - 1982 20 48,000 17,000 - 20,000 35% - 42%

2001 1979 - 1982 21 48,000 16,000 - 19,000 33% - 40%

2002 1979 - 1982 22 48,000 14,000 - 17,000 29% - 35%

2003 1979 - 1982 23 48,000 14,000 - 16,000 29% - 33%

2004 1979 - 1982 24 48,000 4,000 - 17,000 29% - 35%

2005 1979 - 1982 25 48,000 15,000 - 18,000 31% - 38%

2006 1979 - 1982 26 48,000 18,000 - 20,000 37% - 42%

2007 1986 - 1989 20 60,000 32,000 - 34,000 53% - 57%

2008 1987 - 1990 20 62,000 28,000 - 31,000 45% - 50%

2009 1988 - 1991 20 62,000 25,000 - 28,000 41% - 46%

2010 1989 - 1992 20 62,000 25,000 - 29,000 40% - 47%

2011 1990 - 1993 20 62,000 32,000 - 39,000 52% - 63%

2012 1991 - 1994 20 62,000 33,000 - 41,000 53% - 66%

2013 1992 - 1995 20 63,000 35,000 - 43,000 56% - 68%

2014 1993 - 1996 20 64,000 36,000 - 44,000 56% - 69%

2015 1994 - 1997 20 65,000 41,000 - 49,000 63% - 76%

2016 1995 - 1998 20 65,000 42,000 - 50,000 65% - 77%

2017 1996 - 1999 20 65,000 43,000 - 50,000 66% - 77%

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Table 1.9 Estimated Current Fair Market Values, Used Railcars

Estimated Fair Market Value as of January 2018 General Service Boxcars

Range of Year Age Estimated Built (Years) Configuration Fair Market Value

2000 18 60 Feet, 108 Tons, Plate F $47,000 - 56,000

1999 19 60 Feet, 108 Tons, Plate F 46,000 - 55,000

1998 20 60 Feet, 108 Tons, Plate F 45,000 - 54,000

1997 21 60 Feet, 108 Tons, Plate F 43,000 - 52,000

1996 22 60 Feet, 108 Tons, Plate F 40,000 - 48,000

1995 23 60 Feet, 108 Tons, Plate F 38,000 - 45,000

1994 24 50 Feet, 100 Tons, Plate C 33,000 - 40,000

1993 25 50 Feet, 100 Tons, Plate C 32,000 - 38,000

1992 26 50 Feet, 100 Tons, Plate C 31,000 - 37,000

1991 27 50 Feet, 100 Tons, Plate C 30,000 - 36,000

1990 28 50 Feet, 100 Tons, Plate C 29,000 - 35,000

1989 29 50 Feet, 100 Tons, Plate C 28,000 - 33,000

1988 30 50 Feet, 100 Tons, Plate C 27,000 - 33,000

1987 31 N/A N/A

1986 32 N/A N/A

1985 33 N/A N/A

1984 34 N/A N/A

1983 35 N/A N/A

1982 36 50 Feet, 70 Tons, Plate C 9,000 - 13,000

1981 37 50 Feet, 70 Tons, Plate C 8,000 - 12,000

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Table 1.10 Estimated Future Fair Market Values, New Railcars General Service Boxcars - 60 Feet, 105 Tons, Plate F

Estimated Estimated Fair Market Value Fair Market Value ($ per Unit) (% of Replacement Cost)

$130,000 100.00%

$120,000 Series2 90.00% Series2 Series1 $110,000 Inflated $ Series1Uninflated $

80.00% $100,000

$90,000 70.00%

$80,000 60.00%

$70,000 50.00% $60,000

40.00% $50,000

$40,000 30.00%

$30,000 20.00%

$20,000

10.00% $10,000

$0 0.00% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Years in Service

Service 2018 Estimated Uninflated Dollars Inflated Dollars (2.0% Annually) Life Replacement Valuation Estimated Valuation Estimated Year (Years) Cost Index FMV Index FMV

2018 0 $118,000 100.00% $118,000 100.00% $118,000 2019 1 118,000 95.25% 112,400 97.16% 114,648 2020 2 118,000 90.51% 106,800 94.17% 111,115 2021 3 118,000 85.76% 101,200 91.01% 107,394 2022 4 118,000 81.02% 95,600 87.70% 103,481 2023 5 118,000 76.27% 90,000 84.21% 99,367 2024 6 118,000 72.37% 85,400 81.50% 96,174 2025 7 118,000 68.47% 80,800 78.66% 92,814 2026 8 118,000 64.58% 76,200 75.66% 89,280 2027 9 118,000 60.68% 71,600 72.52% 85,569 2028 10 118,000 56.78% 67,000 69.21% 81,673 2029 11 118,000 54.92% 64,800 68.28% 80,571 2030 12 118,000 53.05% 62,600 67.28% 79,392 2031 13 118,000 51.19% 60,400 66.22% 78,134 2032 14 118,000 49.32% 58,200 65.08% 76,794 2033 15 118,000 47.46% 56,000 63.87% 75,369 2034 16 118,000 45.42% 53,600 62.36% 73,581 2035 17 118,000 43.39% 51,200 60.76% 71,692 2036 18 118,000 41.36% 48,800 59.07% 69,698 2037 19 118,000 39.32% 46,400 57.28% 67,596 2038 20 118,000 37.29% 44,000 55.41% 65,382 2039 21 118,000 35.93% 42,400 54.46% 64,264 2040 22 118,000 34.58% 40,800 53.45% 63,076 2041 23 118,000 33.22% 39,200 52.39% 61,814 2042 24 118,000 31.86% 37,600 51.25% 60,477 2043 25 118,000 30.51% 36,000 50.05% 59,062 2044 26 118,000 29.15% 34,400 48.78% 57,566 2045 27 118,000 27.80% 32,800 47.45% 55,986 2046 28 118,000 26.44% 31,200 46.03% 54,320 2047 29 118,000 25.08% 29,600 44.55% 52,565 2048 30 118,000 23.73% 28,000 42.98% 50,718

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Other Valuation Information

Salvage Value: $5,000 - 9,000 Scrap Value: $3,000 - 7,000 Estimated Discount Used to Convert Form Fair Market Value to Orderly Liquidation Value: 20 Percent

Estimated Total Economic Useful Life: 38 to 42 years (Newly Manufactured Equipment)

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