1 70 FOREST VALUATION 



28. What is o-(r-.)G c and o-(r-x)G e in Spruce, Yr and thinnings 

 as by Schwappach, site II, r = So years and 100 years, e = $i, p = 

 3%, Sc = 



29. What is Fc and Fe in the above case if Sc is replaced by 

 Se in the calculation? 



30. If the state of Michigan wanted to go into forestry and 

 establish one million acres of forest in regulated condition what in- 

 vestment, i. e., what is Fc, if : soil = $5 per acre ; C = $10 per acre ; 

 6 = 50 cents; p = 2%; r^8o y; Yr = $2oo; thinnings neglected. 

 What is Fc if Se is substituted and what is Fe then? 



31. What rate of interest is made in the following case: stand 

 at 80 years worth $350; at 60 worth $200, with land worth $10 an 

 acre, 6 = 50 cents and rate of interest 3%. Explain principle in- 

 volved, and write out formula. 



32. If C = $io, 6 = 50 cents, $ = 3%, soil = $io, r==8o 

 years, and Yr = $300, what p f is made here in raising the crop ? 



33. A lumber company bought 10 sections of timber 10 years 

 ago at $15 per acre, land and timber; p = 5% ; will cut 12 M. feet 

 per acre ; expenses per acre, assessment at J4 cost value ; tax rate = 

 12 per 1,000; protection, etc., = 5 cents; no net growth, no fires, etc. 

 losses so far. What is Fc now? 



What is Fe if the cut expected is 12 M. feet at $6 and the 

 company expects to get at this timber in 8 years? Expenses to con- 

 tinue uniform. How does the Fc and Fe compare did they pay 

 too much? 



34. If average stumpage costs $5 per M. feet what must the 

 lumber be worth which will be cut in 40 years from now if : milling 

 = $4; logging = $6; taxes 5 cents per M. feet; protection = I cent 

 per M. feet; p=$%; and land in 40 years to be worth $10; to 

 justify buying this now at $5 per M. feet. 



35. A saw mill costs: for buildings, $10,000, life of this 30 

 years, wreckage value $1,000; for steam engines, etc., $15,000, life 

 15 years, wreckage value $1,000; saw mill machinery $25,000, life 

 10 years, wreckage value $3,000. What is depreciation cost in this 

 mill per year, if p = 5%? 



36. A lumber company has 25 years timber on hand. It cuts 

 20 million feet ; lands cut 10 M. feet per acre. They paid $6 per 

 acre. As fast as lands are cut over they sell for $i to a realty com- 

 pany. They pay 20 cents tax an acre, and also 5 cents for protection. 

 Interest rate =5%. What does the stumpage cost them on their 

 20 million feet per year? 



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