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The most comparable of the two sales is sale No. 1 at $50, 000 <br /> per acre. The major differential between this sale and the <br /> subject property is superior topography and land size. <br /> As previously discussed , the subject property land analyses <br /> indicated a potential usable area of about 10- acres . The <br /> remaining 7 . 6 acres of steep hillside was estimated to have a <br /> value contribution to subject at the rate of $750 per acre . <br /> The usable portion , considering the differences in topography <br /> and size as well as governmental approvals , was estimated to <br /> have a value at the rate of $45 , 000 per acre . Viewed in an <br /> overall context , the site value estimate developes a composite <br /> average of $25 , 892 per acre. <br /> Reproduction Costs <br /> In estimating the cost to reproduce subject facility , the <br /> method utilized was to factor historical costs to a develop a <br /> present reproduction cost estimate. <br /> The building cost manual of the Marshall Valuation Service , <br /> prepared by the Marshall and Swift Publication Company , <br /> publishes cost indexes on a quarterly basis. The cost indexes <br /> are oriented to 1926 equals 100 . These cost indexes are <br /> oriented to industry type. The nearest industry type noted was <br /> cement manufacturing. The indexes employed will be found in <br /> the Marshall and Swift Valuation Manual in Section 98 , pages 7 <br /> and 8 for October , 1984. By dividing the index for the year of <br /> construction into the present day index, a factor is developed <br /> which may be applied to the original cost to update it into a <br /> present reproduction cost estimate. <br /> This methodology has been used frequently when the historical <br /> data is available and is believed to be particularily important <br /> in the subject case because of the intense special use nature <br /> of the property. <br /> This methodology eliminates the need to adjust standardized <br /> costs for locational influences . Also, those costs that are <br /> peculiar to the site are automatically incorporated within the <br /> estimate. <br /> Depreciation <br /> Depreciation in this analysis was estimated on an effective age <br /> life basis. <br /> The rock dust plant was initially constructed in the 1971 -1973 <br /> time period with upgrades being installed from 1975 to 1978. <br /> The maintainance routines appear to be good and the plant <br /> appeared to be efficient . Therefore , the effective age was <br /> estimated at 8 years . <br /> The magnetite plant contains a ball mill obtained in 1972 while <br /> -12- <br />