FOREST PLANTING. 27 



EXAMPLE '2. 



EXPECTED PROFIT FROM A PLANTATION OF RED PINE ON SANDY SOIL 

 IN SOUTH JERSEY PER ACRE. 



INVESTMENT. 



Land $5.00 



Planting Cost 8.00 



$13.00 with compound interest at 5 



per cent, for 60 years. . . .= $242.84 



Taxes i per cent, on land valuers cents paid annually for 20 years ; 

 then i per cent, on $20 (average value land and forest)=2o cents 



foi -,o years ; all with compound interest at 5 per cent = 35-8o 



Protection 10 cents paid annually for 60 years with compound interest 



at 5 per cent = 35-36 



Total investment $314.00 



YIELD. 



Sale value after 60 years : 



30 M ft. lumber at $12 per M stumpage ' $360.00 



Land at original price 5.00 



Total $365.00 



Less cost 314.00 



Net profit $51.00 



Or figured to show the rate of profit as in the first example : 



INVESTMENT. 



Land $5.00 



Planting Cost 8.00 



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



as above 4.13. 



Total investment $17.13 



YIELD. 



Sale Value after 60 years : 



30 M ft. lumber at $12 per M stumpage $360.00 



Land at original price 5.00 



Capital at 5 per cent, required t.o produce cost of Taxes and Pro- 

 tection as above 4. 1 3 



Total $369.13 



This $369.13 equals 5.25 per cent, compound interest on the original invest- 

 ment of $17.13. 



