Some Business Problems of American Forestry

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4. From the i6th year on, we cut only the annual production, namely, 200 x 100,000 equal to 20 million feet per annum.
5. As the extra logging expenses, in this case, are 10 cents higher, the timber has a stumpage value of 90 cents only, instead of $1 per 1000 feet board measure.
6. Taxes and protection from fire will cost annually 0.04 x 100,000 equal to $4000.
7. Thus, under conservative management, the present value of all expected yields, minus expenses for taxes and protection is : 27000 (
...1.045^^ — i) I 18000 4000 0.045x1.04515 ~ 0.045x1.045^5 ~ ^;5J5 18 EQUATION : 30000 (1.045^ — I) 1000 (1.06^ ) >^ 27000 (1.045^^ — I) , 0.045x1.04520 o.o6xi.o6»>

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