Practical Forestry in the Pacific Northwest - Protecting Existing Forests and Growing New Ones, from the Standpoint of the Public and That of the Lumberman, with an Outline of Technical Methods by Edward Tyson Allen
page 91 of 160 (56%)
page 91 of 160 (56%)
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50 60 70 80 50 60 70 80 Years. Years. Years. Years. Years. Years. Years. Years. At 4% $ .35 $ .30 $ .33 $ .41 $ .074 $ .068 $ .078 $ .098 At 5% .56 .53 .65 .88 .102 .101 .126 .172 At 6% .90 .94 1.27 1.87 .142 .152 .208 .309 Example 1: With land worth $2.50 an acre at present, and an estimated carrying charge of 3 cents a year for protection and 20 cents per taxes, what stumpage price for a 50-year crop will pay 5 per cent compound interest? 6 per cent? 5% 6% 2-1/2 X .56 = $1.40 2-1/2 X .90 = $2.25 23 X .102 = 2.35 23 X .142 = 3.27 ----- ----- $3.75 $5.52 Example 2: With land worth $5 an acre at present, and stumpage estimated to reach $7.00 in 60 years, what is the maximum annual carrying charge per acre which can be paid during this period and permit a 5 per cent return? A 6 per cent return? 5% 6% Gross return = $7.00 Gross return = $7.00 5 X .53 = 2.65 5 X .94 = 4.70 ----- ----- $4.35/.101 = 43c $2.30/.152 = 15c Example 3: Assuming that stumpage will be worth $6.00 in 50 years, |
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