90 FOREST VALUATION 



expense corresponding to C but falling at different years, nor 

 of income from thinnings corresponding to Y but received 

 previous to this final cut. 



The present value of these items is found by Formula X, since 

 each single payment, while not repeated during the rotation, is 

 assumed to recur in the next rotation, and the total of all future 

 payments forms the series. 



Let T P = income from thinning in year p, recurring every n 

 years forever. 



T 



Then is the value of T P in the first year, n. 



i.op 



By substituting q, or r, for p, the present capital value of 

 other items of income or of expense, for any year, is obtained. 



The present value of forest property just previous to removal 

 of a final cut of timber is summed up as 



T r (l.O^-O ~C-C d 



F =Y (C | ) | 



i.op n i 



115. Value of an Even-aged Forest for Any Year. The value 

 of the forest for any other year, or during its growth, is ob- 

 tained by discounting the above value for the period previous 

 to this final cut. The forest has its maximum value just before 

 the principal yield is removed. The further into the future this 

 income is postponed, the less becomes the present value of the 

 property. 



