EXPECTATION VALUE. 135 



h. Notes 071 the Exjjectation Value of the Groiving Stock. 



The expectation value of the growing stock depends on the 

 following matters : — • 



i. The Absolute AiiorxT of Receipts and Expenses. 



Regarding the value of the soil to be introduced into the 

 calculation, it should be noted, that the maximum expectation 

 value should be chosen (in the above example 404 shillings), if 

 the soil is again to be used for forest purposes ; if the soil can 

 be more profitably used for agriculture or other purposes, the 

 correspondingly increased value must be introduced into the 

 account. 



ii. The Length of the Rotation. 



In the case of fully-stocked, or normal, woods, the highest 

 expectation value is obtained for that rotation, for which the 

 expectation value of the soil culminates, provided that value 

 is introduced into the account. (In the above example, rota- 

 tion = 80 years and S^ = 404 shillings.) If a larger value of 

 soil is introduced, then the maximum expectation value of the 

 growing stock is obtained for a lower rotation, than that for 

 which the expectation value of the soil culminates, and vice 

 versa. 



In the case of insufficiently stocked, or abnormal, woods, the 

 rotation, for which the highest expectation value of the growing 

 stock is obtained, can only be determined by experimental 

 calculations based upon the data of each special case. 



Example. — Taking the same data as before, 



For a rotation of 70 years 'Vi^ = 1,169 shillings, 

 „ 80 „ „ =1,193 

 „ 90 ,, „ =1,160 

 „ 100 ,, ,, = 1,092 



The maximum value is obtained for a rotation of 80 years, 

 that is to say, the rotation under which the expectation value 

 of the soil culminates (see page 127). 



