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The question of whether leases are proper items to be considered in purchasing assets was before the Board in the Western Inland Acquisition Case. 14/ In its decision the Board stated: 

"...although the leases to which Western assigned a value do not represent any capital investment by Inland and should not be assigned a value for rate marketing purposes, they do represent factors to be taken into consideration in the purchase of the property." 

Rental under Colonial's lease is approximately $1.40 per square foot per year less than the currently prevailing rent for similar space. In the event Eastern were to take over Colonial's lease, its payments thereunder would be approximately $44,800 per year less than they would be under a newly executed lease for similar space. 

In the event Eastern were to require additional hangar space at LaGuardia over the 26 year period, it would save approximately $1,164,800 over the period by the acquisition of the Colonial lease. It must be recognized, however, that such savings would be extended over the entire period and would not be realized in the immediate future. Accordingly, in computing the value of the savings which would be realized, it appears that it would be proper to assess the value on the basis of the present value of the annual savings for a period of 26 years. Assuming a 4 percent interest rate the present value of such lease would amount to approximately $716,000. 

Further, in addition to intangibles of recognized value, Colonial has other intangible values of unassigned values. Eastern has assigned

14/ Western Air Lines, Inc., Acquisition of Inland Air Lines, Inc. 4-CAB 654 (1944), Docket No. 1106, dated May 23, 1944.