APPENDIX 



INVESTMENT ANALYSIS PROGRAM NO. 6 



This program is a modification of the pro- 

 gram prepared originally by Clark Row^ and 

 later revised by Robert Marty et al.^ ° The 

 basic changes made in this version of the pro- 

 gram are as follows: 



1. Change in input requirements so that 

 periodic and annual incomes can be handled 

 in addition to periodic and annual costs. Cost 

 items are identified in the input with a minus 

 sign (-) preceding the amount of the cost. 

 Final value, treated as a separate item in the 

 original program, is handled as a periodic in- 

 come in this version of the program. 



2. Change in input requirements so that 

 the program can be used with and without 

 product evaluations. That is, if only periodic 

 costs and incomes are involved, the only con- 

 trol cards needed are those associated with 

 periodic costs. If both periodic and annual 

 costs and incomes are included in the problem, 

 only those control cards associated with peri- 

 odic and annual costs and incomes are re- 

 quired. If product evaluations are included in 

 the problem, additional control cards are 

 required. 



3. Addition of an option for evaluating tim- 

 ber stand replacement priorities. This option 

 requires two sets of control cards: one set 

 shows costs and incomes associated with the 

 future timber growing opportunity; a second 

 set shows costs and incomes associated with 

 the present stand conversion opportunity. The 

 future timber growing opportunity and the 



'^Row, Clark. Determining forest investment rates 

 of return by electronic computer. U.S. Forest Serv. 

 Res. Pap. SO-6, 13 pp. 1963. 



^ ^ Marty, Robert, Charles Rendt, and John Fedkiw. 

 A guide for evaluating reforestation and stand im- 

 provement projects in timber management on the 

 National Forests. U.S. Dep. Agr., Agr, Handbook 304, 

 24 pp. 1966. 



present stand conversion opportunity are eval- 

 uated separately and then together. 



4. Addition of an option for evaluating 

 timber stand improvement (TSI) programs. 



This option is used to evaluate timber stand 

 improvement program levels and is particularly 

 useful where the program differences to be 

 evaluated affect the yield in a complex way. 

 For example, the inclusion of thinning in the 

 timber growing program may affect the qual- 

 ity, quantity, and timing of intermediate cuts 

 as well as the final cut. 



Two sets of control cards are used: one 

 describes the minimum program considered, 

 and a second describes the program with one 

 or more other timber practices included. Each 

 of the programs is evaluated separately and 

 then the effect of the practices added is 

 evaluated. 



INPUT REQUIREMENTS IN BRIEF 



Up to 15 different cards or card types 

 (groups of repeated cards) are used, depending 

 on the nature of the problem and the way the 

 program is being used. Whenever the program 

 is used to evaluate stand replacement or tim- 

 ber stand improvement programs, cards or 

 card types 7 through 1 3 are repeated as needed 

 to form the second set of control cards men- 

 tioned above. 



These 1 5 different cards or card types may 

 also be grouped into four classes. 



CLASS I includes cards 1, 2, and 3. These 

 are used to identify the program user and 

 are required only with the first problem 

 when a user is submitting a number of 

 problems. 



CLASS II includes cards 4, 6, and 7 (and 

 5 where used), which are problem descrip- 

 tions and general control cards required 

 with every problem. 



I 



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