FOREST PROBLEMS. 213 



investment. As a matter of fact, he will make about 

 4 per cent, on the investment, and no more, unless the 

 stumpage prices do more than double within the next 

 fifteen years. 



28, AN ADIRONDACK PROBLEM. 



Premises: A tract of land in the Adirondacks, acquired 

 in the year 1876 at $5 per acre, was cut over in 1888, 

 yielding then 1,800 feet per acre, board measure. White 

 Pine, worth $3 per thousand feet, board measure, and 

 2,600 feet, board measure. Spruce, worth $1 per thousand 

 feet, board measure. 



In the year 1896 there were cut, per acre, another 6,550 

 feet, board measure, of Spruce, worth SI. 50 per thousand 

 feet, board measure. 



The taxes on the forest were 5 cents per acre per annum, 

 the expense of administration and protection 2 cents per 

 acre per annum. Figure at 6 per cent. 



Question: At what cost were those last 6,550 feet, board 

 measure, produced? 



Points: 1. The price paid for the land, in 1876, was 

 $5 per acre, which accrued, at compound interest, and 

 up to the year 1896, to $5.00X1.06^". 



2. The nmning expenses during the period 1876 to 

 1896 were 7 cents per acre per annum, and sum \ip to 

 the amount of 



0.07(1.06'°- 1) 

 0.06 



3. The yield made in 1888 was $3.00X1.8+?1.00X 

 2.6 = $8.00. Discounted forward to the year of calcula- 

 tion, 1896, this yield (which is of course to be subtracted 

 from the various outlays) amounts to $8.00X1.06". 



