COCONUT PLANTER'S MANUAL. 75 



of copra. That will give you the gross annual income of the bearing 

 portion of the estate. Subtract from the gross annual income the 

 expenditure per annum on the bearing portion of the estate. If the 

 figures are not available from the estate books, the figures of the working 

 of coconut estates, similarly situated, will supply you with the infor- 

 mation that is required. 



The gross income per annum, less expenditure per annum, will 

 give you the nett income per annum. The nett income, into 10 years' 

 purchase equals value of the bearing portion of the estate. Add 

 to this the value of non- bearing acreage and the acreage of the vacant 

 land, and you have the value of the whole estate. When coconut 

 estates are above the average, the value is about 1 2 years' purchase. 



A. W. B. 



Another well-known planter writes: — 



The method usually adopted in valuing a coconut estate is to 

 base your calculation on a 10 years' purchase. 



On most estates run on modern lines figures are usually available 

 to work on. Otherwise a census of the trees must be taken and 

 the estimate of crop made by going carefully through the estate and 

 estimating the nuts per tree by taking what one considers average 

 bearing trees. In this case the number of trees is multiplied by the 

 number of nuts per tree and crop for the year arrived at. By this 

 means the estimate of crop is close enough for purposes of valuation. 



For example, let us suppose that an estate of 100 acres yielding 

 3 candies per acre, costing Rs. 30 to produce, has to be valued. We 

 proceed as follows: — 



Take the price of copra as Rs. 60 per candy, and Rs. 30 as the cost 

 per candy. Then the nett profit per acre per annum would be Rs« 30 

 and the valuation would be arrived at thus : — 100 acres x 3 candies 

 per annum x Rs. 30 profit per candy equal Rs. 9,000 per annum, 

 At 10 years' purchase the estate would therefore be worth Rs. 90,000, 



A. D. 



