9 8 FOREST VALUATION 



is obtained if each yield is treated as a recurring rental (Formula 

 X, Diagram II). An example of such a valuation would be: 



Crops cut z 



in year a, - total area, 



in year b, - total area, 



in year c, - total area. 



z 



If total value of all crops is Y and total expense e is capital- 

 ized as E, and there is no expense for reproduction, the value of 

 the forest is: 



- (i.op n -) +-(i.<#*-) + - (i.op n ~ c ) 

 F 9 -*- J - E. 



Should an expense for reproduction, C, occur at the time of 

 cutting, or any other initial expense be incurred at that time, 

 this expense is subtracted from Y in that year. 



As 



V C V C V C 



- - 



F v = - - - - -- E. 



i. op i 



(F.) 



Formulae are merely convenient methods of calculating re- 

 sults after the facts are obtained. Any large area of forest 

 requires careful analysis and separation into its component 

 parts before any of the methods of computing value can be 

 applied. 



119. Value of Timber Separate from Land. When for any 

 reason the value of the timber must be separated from the value 

 of bare land, it may be done by subtracting this latter value 

 S v from the formulae giving the total value of the property. 

 Formula D 2 then becomes 



