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CHAPTER IV. 



VALUATION OF WHOLE WOODS OR FORESTS. 



THE value of a whole wood, or a forest, is equal to the 

 value of the soil plus the value of the growing stock ; hence 

 it can be ascertained by adding together these two values. At 

 the same time, that value can also be determined direct out of 

 the returns and expenses, or from sales of forests, or it can be 

 calculated out of the rental which the forest yields. The 

 present chapter shows how the forester proceeds in each of 

 these cases : 



1. Expectation Value of a Forest. 



As this is based upon future returns and costs, which differ 

 under different methods of treatment and species, two cases 

 must be distinguished : 



a. Calculation under the supposition that the same Species and System 

 of Management are retained, after the present Crop has teen 

 Harvested. 



(1) The value of the forest is equal to the value of the soil 

 and the expectation value of the growing stock. The greatest 

 expectation value of the forest is obtained for that rotation, 

 under which the expectation value of the soil culminates. 



Let the age of the existing growing stock = m, then the 

 expectation value of the forest is : 



Y r +T n xl'op r ~ n +. . . + T q xl'op r ~ q 



m -l] _ q 



be 



. . . + T q xl'op r - (l -E(l'op r - m -l)+ r S e 



- 4; -X 



