lofi THE FINANCIAL RESULTS OF FORESTRY, 



Now: — 

 Annual P 



■Op 

 y,+ r„ + . . .-^T-c-rXc 



= capitalised value of annual profit = total profit ; 

 = the expectation value of the 



■Op 

 forest under the annual Avorking = F\ ; 



r X *S', + /• X "6r, = cost value of forest = F, ; 



hence, total, or capital, value of profit of the whole forest : — 



Total P = F^ — Fg. 



In words, the profit is equal to the difference between the 

 expectation and cost values of a forest. For the rest, what 

 has been said as regards the intermittent working holds also 

 good in respect of the annual working, and vice versa, because 

 a series of age gradations may be considered as so many 

 separate woods of various ages ; the profit calculated for the 

 series as a whole must be equal to that obtained by adding 

 together the profits derived from the several age gradations, 

 each calculated for itself. 



Examples. — Given the data as before, that is to say, the 

 returns to be those of the yield table on p. 120, 



p = 2^ per cent. ; e =^3 shillings ; c ^ 60 shillings ; 

 r = 80 years. 



(1.) Calculate the profit per blank acre, if the soil was 

 bought for 300s. — 



From previous examples it is known, that *S'<; = 404s. ; 

 hence— p^.^^^ ^ ^^^ _ ^^^ ^ ^^^^^ 



(2.) Calculate the profit of a wood 45 years old, under the 



same conditions. 

 It was found at page 146, that ^'"F^ = 1,597s., while 

 457^;. = (300 + 120 + 60) X l-025^-^ - [5 X l-025i ' + 

 44 X 1-025^ + 120] 

 45/y^, = 1,281 shillings; hence— 



1> = ^U\ - '-'Fc = 1,597 — 1,281 = 316 shillings. 



