FOREST FINANCE 



16 



THIRD. 



Hence 



then 

 and 



100 



(K) 



(O) 



FIFTH. 



For "y" ranging from 2% to 8% and for "s" ranging from 5% to 30%, 

 the percentage of net revenue "z" is reduced as appears in the table following: — 



In the case of a forest which does not yield an annual surplus revenue, 

 the influence of the protective expenses is somewhat different from the above, 

 as is illustrated by the following considerations: — 



FIRST. Such aforest "V" grows in "n" years at "x%" to a value of V(1.0x°) 

 wherein "V" equals the sale value. 



SECOND. The same forest "V" protected at an annual expense of "w"% 

 shows a net aft-value, omitting the influence of taxes, etc. 

 w ^ 1.0p° — 1 



V(1.0x°) — V 



)• 



(P) 



100 ( O.Op 

 where "p" equals the per cent, of capitalization selected by the owner. 



THIRD. The sacrifice brought by the owner for protection's sake is: 



V — (1.0pn — 1) (Q) 



P 



