Figure 2. Volume by tree size class in fully stocked wild stands 

 of white pine, site class 60. 



TIME PERIOD ESTIMATES 

 MUST BE CONSISTENT 



Two aspects of time are important in fi- 

 nancial calculations. First, there are the specific 

 times when incomes are expected or expendi- 

 tures are to be made. Second, there is the 

 overall time period, the rotation planned for 

 a timber growing operation. 



Depending on the circumstances surround- 

 ing the management of a Forest, the effects of 



a particular management treatment may be 

 immediate or may be realized at some later 

 point in time. To illustrate, if the annual 

 allowable cut were to increase immediately 

 because of some management action, the fi- 

 nancial calculations would be based on the net 

 value of the increase in cut for as long as it 

 persisted. On the other hand, if the benefits 

 were not realized until some future date dur- 

 ing or at the end of the rotation, the calcula- 

 tion of rate of return would have to take 

 account of the elapsed time. 



11 



