144 



CHAPTER IV. 



VALUATIOIf or WHOLE WOODS OR FORESTS. 



The value of a wliole wood, or a forest, is equal to the 

 value of the soil plus the value of the growing stock ; hence, 

 it can be ascertained by adding together these two values. At 

 the same time, that value can also be determined direct out of 

 tlie returns and expenses, or from sales of forests, or it can be 

 calculated out of the rental, which the forest yields. The 

 present chapter shows how the forester proceeds in each of 

 these cases : — 



1. Expectation Value of a Forest. 

 As this is based upon future returns and costs, which differ 

 under different methods of treatment and species, two cases 

 must be distinguished : — 



a. Calnikdion itiuhr the Svppo^ition ihat the mme Species and System 

 of Management are retained, after the p-esent Crop has been 

 Harvested. 

 (1.) Thevalue of the forest is equal to the ex^Dectation value 



of the soil plus the expectation value of the growing stock. 



The greatest expectation value of the forest is obtained for 



that rotation, under which the expectation value of the soil 



culminates: — ,„„ ,„,-, , ,^, 



Let tbe age of the existing growing stock = m, then the 

 expectation value of the forest is — 



r, + 2',, X roj/-" 4- . . . + 7; X roy- 



'"F - - ('-.s; + E) (i-Ojj'-"' - 1) , ,^ 



= :^;+^'»xi-Oj/-"+ • • • +r,xi-Oj/-''-j: (i-Oj/-"'-i)+'">^ ,. 



