87 



A. The present value of the land, at 1 per acre, including buildings, it will amount 

 to 2,500. 



B. The capitalized value at 3^ per cent, of the cost of cultivation in perpetuity. If 

 the period be n years, the nth part of the area will be planted every year, and if the cost 

 be 4 per acre (including the total cost of management, works, nurseries, &c.) the yearly 

 expenditure will be 10,000/n, representing an initial outlay of 285,714/ra. This is 

 assuming that on account of the shortness of the period, or imperfect acclimatization, 

 natural reproduction will not take place, and the cost of re-planting will have to be 

 incurred in perpetuity. 



C. The capitalized value of the cost of maintenance in perpetuity ; this may be 

 estimated at 2s. per acre of the total area, per year, representing a capital value of 7,143. 



The total capitalized value S, of all present and future outlay is therefore : 



S = 9,643 -|- 285,714/n, 

 the actual values for different rotations being : 



n=25 years u. ... ... S=2J,072 



30 ... ... ... 19,167 



35 ... .., ... 17,806 



40 ... ... ... 16,785 



45 ... ... ... 15,992 



50 ... 15,357 



55 ,, ... 14,838 



60 ... ... ... 14,405 



From the nth year, when all the n compartments are stocked, the plantation will 

 yield in perpetuity 1,000 cubic feet per acre per year that is, 2,500,000 cubic feet 

 one-fifth being deducted for tops and branches, leaves 2,000,000 cubic feet of logwood, 

 which barked and squared would yield 1,000,000 cubic feet of marketable wood. Owing 

 to the proximity to markets, this should be worth at least sixpence per cubic foot, 

 standing.* The revenue from the nth year would thus amount to 25,000, representing 

 a capital of 714,286, the present prospective value B, of which is, at 3 per cent., for 

 different rotations : 



* In Australia, at Melbourne, the wood of gums is worth from one shilling ajid sixpence a cubic foot, 

 upwards. 



