196 THE INCREMENT. 





10- 



Again, the approximate value : 



SECTION IV. ADDITION OF THE SEVERAL INCREMENT 



PER CENTS. LEADING TO THE FOREST PER CENT. 



On reference to page 163 it will be seen that the current 

 annual per cent, with which the capital invested in a wood 

 works, is expressed by the formula : 



_(Y m+l -Y m -e) 100_(Y m+l -Y m -e) 100. 

 S c + m G F c 



or, if m G c is taken as = Y m , 



_(Y m+l -Y m -e)xlW 

 Pf S +Y m 



This formula could be used to determine the financial 

 activity of a wood at any time, if it were possible to determine 

 accurately the value increment of the wood for a single year. 

 This, however, is a very uncertain operation ; hence the 

 difference in the value of the crop produced during a series 

 of years must be ascertained, a difference due to the combined 

 effect of volume-, quantity-, and price increment. 



The determination of the combined increment per cent, 

 is done in the following manner : A property which has 

 at present a value = w increases during the next n years 



in volume by p v per cent, annually. 

 quality p q 



,, price ,, p s ,, ,, 



Its value W at the end of the n years may be expressed by 

 the formula : 



