

DETERMINATION OF THE PROFIT. 161 



hence total annual costs = 



and the annual profit : 



Annual P = 

 Y r +T a + . . . + T q -[(rxS +rx n G c +rxE)x'op + c]. 



This formula can be written thus : 



Annual P 



Y r +T a +. . . + T q -c-rxe-[rxS c + rx n G c ~]x'op; 



or, 



Annu,OP= Y r +T.+. . . + T t -c-rx< x j x nQ 

 'op 'op 



Now : 

 Annual P 



= capitalized value of annual profit = total profit ; 

 expectation value of the 





'op 



Y r +T a +. . . + T q -c-rxe_ 

 'op 



forest under the annual working = F e ; 



r x S c + r x n G c = cost value of forest = F ; 



hence total, or capital, value of profit of the whole forest : 

 Total P = F e -F c . 



In words, the profit is equal to the difference between the 

 expectation and cost values of a forest. For the rest, what 

 has been said as regards the intermittent working holds also 

 good in respect of the annual working, and vice versa, because 

 a series of age gradations may be considered as so many 

 separate woods of various ages ; the profit calculated for the 

 series as a whole must be equal to that obtained by adding 

 together the profits derived from the several age gradations, 

 each calculated for itself. 



