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CHAPTEE III. 



VALUATION OF THE GROWING STOCK. 



THE value of the growing stock can, as in the case of the 

 soil, be determined as the expectation, cost, or sale value. 

 The valuation may refer to : 



(1) A whole wood or a series of woods. 



(2) A part of a wood, such as one or more trees, one or 



more units of measurement, or one or several } r ears 

 increment. 



SECTION I. VALUE OF THE GROWING STOCK OF A WHOLE 



WOOD. 



1. Expectation Value of a Whole Wood. 



The expectation value of the growing stock of a wood now 

 m years old is equal to the present value of all incomes, which 

 may be expected from the wood, less the present value of all 

 expenses which must be incurred between the year m and the 

 time when the wood is finally cut over. 



a. Method of Calculation. 



Starting from the same data as those given in the case of the 

 valuation of forest soil, the receipts consist of : 



(1) Final yield in the year r = Y r ; present value = 



r, 



(2) Intermediate yields, as thinnings, to be realized in the 

 years n, o, p, and q ; their present value amounts to : 



