FOREST PROBLEMS. 213 



investment. As a matter of fact, he will make about 

 4 per cent, on the investment, and no more, unless the 

 stumpage prices do more than double within the next 

 fifteen years. 



28. AN ADIRONDACK PROBLEM. 



Premises: A tract of land in the Adirondacks, acquired 

 in the year 1876 at $5 per acre, was cut over in 1888, 

 yielding then 1,800 feet per acre, board measure, White 

 Pine, worth $3 per thousand feet, board measure, and 

 2,600 feet, board measure, Spruce, worth $1 per thousand 

 feet, board measure. 



In the year 1896 there were cut, per acre, another 6,550 

 feet, board measure, of Spruce, worth $1.50 per thousand 

 feet, board measure. 



The taxes on the forest were 5 cents per acre per annum, 

 the expense of administration and protection 2 cents per 

 acre per annum. Figure at 6 per cent. 



Question: At what cost were those last 6,550 feet, board 

 measure, produced? 



Points: 1. The price paid for the land, in 1876, was 

 $5 per acre, which accrued, at compound interest, and 

 up to the year 1896, to $5.00X1.06 20 . 



2. The running expenses during the period 1876 to 

 1896 were 7 cents per acre per annum, and sum up to 

 the amount of 



0.07(1.06 20 -1) 

 0.06 



3. The yield made in 1888 was $3.00X1.8+$1.00X 

 2.6 = $8. 00. Discounted forward to the year of calcula- 

 tion, 1896, this yield (which is of course to be subtracted 

 from the various outlays) amounts to $S,QOX1<0 8 . 



