Capitolo 76
series of the sixty different conditions of original investment and
annual cost.
You/he/she should be kept in mind that, even if value of present earth is
made a position, the earth's value to the duration of crop is
not considered. This value is sure to greatly increase in the
long periods involved. Positions of taxation will be as good against him
as against the lumber. Indeed a lot of earth is now contained without some
you concern to the possible second growth. You/he/she should be presumed therefore
what some profit in investment of forest shown will be _increased_ from
the obtainable sum for the earth at the end of the same period.
Costs for M of increasing Cost for M to grow
Douglas the fir Douglas resultant fir resulting
from every $1 for acrid from every 1 cent for acrid
originally it invested. of annual carrying charge.
--------At the end of----------------- Á. the end of---------
50 60 70 80 50 60 70 80
Years. Years. Years. Years. Years. Years. Years. Years.
At 4 o'clock% $.35 $.30 $.33 $.41 $.074 $.068 $.078 $.098
At 5 o'clock% .56 .53 .65 .88 .102 .101 .126 .172
At 6 o'clock% .90 .94 1.27 1.87 .142 .152 .208 .309
Example 1: With earth value $2.50 an acrid currently, and an appraised
carrying charge of 3 cents for year for protection and 20 cents for
taxes, that stumpages fix the price than for a crop of 50-year it will pay 5 for cent
compound interest? 6 for cent?
5% 6%
2-1/2 Xs .56 = $1.40 2-1/2 Xs .90 = $2.25
23 Xs .102 = 2.35 23 Xs .142 = 3.27
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$3.75 $5.52
Example 2: With earth value $5 an acrid currently, and stumpage
valued to arrive $7.00 in 60 years, what is the annual plant of maximum
carrying charge for acrid that can be paid during this period and
does allow a 5 for hundredth return? Do a 6 for cent return?
5% 6%
Gross return = $7.00 Gross return = $7.00
5 Xs .53 = 2.65 5 Xs .94 = 4.70
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