Graph 4. Land expectation values, site index 65, thinned to basal area 



of 100 square feet per acre. 



^ 200i- 



100 - 



Moximum Rote 

 of Return 6.7% 



(/) 



Ul 



3 

 _J 

 < 

 > 



O 

 liJ 



a. 



X 



UJ 



o 



< 



.100 



$ 200 



100 



Maximum Rate 

 of Return 5.8% 



2 4 6 



45 YEAR ROTATION 



8 .0 -'°° 



fNTEREST RATE 



2 4 6 8 



55 YEAR ROTATION 



^200 



100 



-100 



4200 



Maximum Rate 

 of Return 5.7% 



Maximum Rate 

 of Return 5.4% 



10 

 INTEREST RATE 



65 YEAR ROTATION 



75 YEAR ROTATION 



many owners want to plant trees. By analyzing their plantation oppor- 

 tunity as determined here, they have a basis for comparison with al- 

 ternative uses of their land. The analysis also indicates that shorter 

 rotations should be used on better sites to maximize rates of return. 



If a risk factor of 2-4 percent is included in any interest rate to 

 be used as minimal criteria for investment, then site 60 is likely to 

 be considered as marginal or sub-marginal for white pine plantations. 

 The site 60 rotation of 65 years for the maximum rate of return is 20 

 years longer than that for site 65 and the rate is 1.3 percentage points 

 lower. Site 70 would undoubtedly give a higher rate of return. Yoho 



11 



