The debate

Jostnix jostnix at aol.com
Wed Dec 3 13:00:12 EST 1997


In article <01bcffe6$dfaab980$3f13b4c1 at SE8R62600424.hel.se.pnu.com>, "Anders
Axelsson" <anders.axelsson at eu.pnu.com> writes:

>
Jostnix <jostnix at aol.com> wrote in article 
> The Income Capitalization
>Approach is just one method designed to reflect
> forest management
>improvements as a part of the equation.  As Joe stated,
large
> industrial
>timber owners use just these types of appraisals and make
money (by
> paying
>foresters good money) to do this.  
> 
So,what does your formula look
>like?

>AA

Alright, Alright!

Here goes:

Land Expectation Value (LEV) = Net Value in Year n / (1+i)to n power -1

Easy, huh?  Not for a minute....

That is why foresters earn their appraisals.  And go to school for a year or
two...and take lots of math.

I would suggest you purchase Basic Concepts in Forest Valuation by Bullard and
Straka (ISBN 0964129116) and read starting with section 7.2....twelve pages
later and dozens of calculations later - you will get your final product.

I would also suggest you read the first 6 chapters, however, to get the basics
on forest financial analysis and learn how to use a calculator with the y to
the x key (HP financial calculator).

Ah, the life of a forester<grin>.  Anders, you played right into my hands on
that one and this is not meant for you alone.

Steve Nix, forestry guide
The Mining Company

        
      )(
    ))}{((
  ))))}{((((
))))))}{((((((
``````) (_________John Stephen Nix
"Everybodys ignorant 'cept on different things"  Will Rogers
Alabama Forestry Link...http://members.aol.com/jostnix/index.htm 
http://forestry.miningco.com



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