EQUIVALENT ANNUAL RENTAL 245 



except that the value of the land is not added, and the 

 original cost of planting and establishing the crop is 

 deducted. 1 Then, this net credit sum is discounted into a 

 yearly payment, at the same rate of interest as is reckoned 

 on monies received for thinnings or spent as outgoings. 



Thus, in the case of the Larch with a 38-year rotation : 



The accumulated credit from the sale of timber = ^91 o o 

 Less, accumulated outgoings * . . * 8100 



82 10 o 

 Less original cost of planting ..... 800 



Total net credit sum to be discounted into a yearly 



payment ........ ^74 10 o 



* The outgoings are taken to be 2s. per acre per annum over and above any 

 sum received as a sporting rent. These outgoings do not include the cost of felling 

 the final crop, or any sum for planting or cleaning the crop in the first year or so. 



Now, by reference to the 4 per cent, tables, 2 it will be seen, 

 that in 38 years 1 per annum amounts to 85-97 : 

 Hence, ^85-97 = the accumulated value of i per annum 



ifv 



Hence, the yearly rental representing a rent for the land, and 

 interest on the cost of planting and establishing the crop, is 

 equal to 173. 4d. per acre, if the 4 per cent, tables be used. 



And if the 3! per cent, tables be used throughout, the net 

 credit sum to be discounted is 72, 153., which is equivalent to 

 an annual rental of i8s. lod. per acre. And if the 3 per cent. 

 tables be used throughout, the net credit sum is 70, i6s., 

 which is equivalent to an annual rental of ,1, os. 5d. per acre. 



The following tables show the maximum rentals 3 that may 

 be obtained from large areas under even-aged high forest. 



1 The reason for this difference is, that the credit sum, which is to be 

 discounted into a yearly payment, must include only deferred profits, 

 after paying back the original sum spent on planting. 



2 Vide Appendix. 



3 These rentals are all referable to the data for crops given in 

 Chapter XL, unless otherwise stated. 



