166 THE FINANCIAL RESULTS OF FORESTRY. 



b. Cakulation for the Annual Working. 



Under the annual working, with equal annual increment 

 yield and costs, the current annual forest per cent, is equal to 

 the mean annual forest per cent. In this case the annual net 

 return amounts to : 



Y r +T a + . . . + T q -c-rxe, 

 and the producing capital to 



rxS e +rx*G e ; 



hence 



mean _ *r+-*a+* + -Lg C 



v 



rxS e +rx n G c 



~-> _ -*r"i -* a\~ H~ *- q C TX6 ~lf)f) 

 F c 



By multiplying and dividing the enumerator in this formula 

 by 'op, the following is obtained : 



r,+r.+...+r,-c-rxA x 100 



or, as the part in brackets is equal to the expectation value of 

 the 



This formula is identical with that obtained above for the 

 profit = F e -F c : 



IfF e >F c ,then 

 IfF e =F c , then 



The highest mean annual forest per cent, under the annual 

 working is obtained for that rotation under which the expecta- 

 tion value of the forest reaches its maximum. 



