i4t) VALUATION OF WHULE WOODS OH iOKESTS. 



VOp- - 1 



i^; 



as before. 



Example. — Determine the expectation value of a forest now 

 45 years old, if that forest yields the returns given in 

 the money yield table for the Scotch pine at page 120 ; 

 rotation = 80 years ; cost of formation = 60 shillings ; per 

 cent. = 2^ ; and annual costs per acre = 3 shillings. 



1-025*^(^3,004 + 87 X 1-025^^" + 118 X 1025-" 



_ + 1B4X 1-025^0 + p4. + 1-^ .-^0) _ 

 l-025«'^-l 

 ^T, = 1,597 shillings = £79 17s. Od. 



It was found before — 



At page 125. ^'\S', = 404 shillings. 



„ 134. ^G', = 1,193 „ 



Total . . = 1,597 „ = £79 17.s. 0(/. 

 as above. 



In the case of the present growing stock being abnormal, 

 the corresponding values must be introduced into the account 

 (see page 136). 



h. Calculation uinler Ihe Supposition that, after the cuttimj ouer of the 

 present Crop, another Species or another Jfethod of using the Soil 

 is introduced. 



In this case, the value »S" of the soil, corresponding to 

 the new conditions, must be introduced into the account ; 

 then the rotation r' must be determined, under which the 

 expectation value of the present growing stock reaches its 

 maximum. 



