26 FOREST PLANTING. 



EXAMPLE 1. 



KXI'KCTKD PROFIT FROM A PLANTATION OF WHITE PINE OR AUSTRIAN 

 PINE ON ROCKY GROUND IN NORTH JERSEY PER ACRE. 



INVESTMENT. 



Land $6.00 



Planting Cost 9.00 



$15.00 with compound interest at 5 



per cent, for 40 years. . . .= $105.60 



Taxes i per cent, on land value=6 cents paid annually for 20 years ; 

 then i per cent, on $30 (average value land and forest)=:3o cents 



for 20 years; all with compound interest at 5 per cent = 15.16 



Protection=io cents paid annually for 40 years with 5 per cent, com- 

 pound interest = 12.08 



Total investment $132.^4 



YIELD. 



Sale Value after 40 years : 



20 M ft. lumber at $10 per M stumpage $200.00 



Land at original price 6.00 



Total $206.00 



Less cost 132.84 



Net profit $73~-i6 



Or, figured another way : 



INVESTMENT. 



Land $6.00 



Planting Cost 9-o 



Capital at 5 per cent, required to produce cost of Taxes and Protection 



as above 5o 



Total $20.00 



YIELD. 



- 



Sale Value after 40 years : 



20 M ft. lumber at $10 per M stumpage $200.00 



Land at original price 6.00 



Capital for expenses 5-oo 



Total $211.00 



This $211. equals 6 per cent, compound interest on the original investment 

 of $20. 



