COST, SALE AND RENTAL VALUES. 153 



3. Sale Value of a Forest. 



By the sale value of a forest is understood the value 

 estimated according to prices realized for forests of a similar 

 description. As it is difficult to estimate existing differences, 

 and hence to estimate the sale value, the latter is of subordinate 

 importance. 



4. Rental Value of a Forest. 



Under the rental value of a forest is understood the 

 capitalized rental which it is capable of yielding. If the 

 annually equal rental is = R, the rental value would be : 



Rental value = ; - 



This method is only applicable in the case of a forest which 

 can be so managed that it yields an annually (or periodic) 

 equal rental. The rental is represented by 



Y r +T a +T b + . . . + T q -(c + rxe), 

 and the rental value of the forest is 



_Y r +T a +T b + . . . + T q -(c+rxe) . 

 op 



Or, if is denoted by = E, 

 'op 



Rental value of a whole series = Y r+ T *+- ' - + T ^ C - rX E. 



'op 



The mean value of one age gradation would amount to 



+ ' ' ' 

 r x 'op 



Rental value per unit of &rea,= Yr+ Ta + ' ' ' + T< *~~ C -E. 



' 



