Determining the Net Present Value of Timber Investments and Comparing Investments of Different Rotations
Would a forest landowner be economically better off growing a forest for pulpwood production with a short rotation instead of growing the same forest for sawtimber production with a longer rotation? To help answer this and related questions, this 4-page fact sheet written by Andres Susaeta and Chri...
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| Language: | English |
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The University of Florida George A. Smathers Libraries
2019-12-01
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| Series: | EDIS |
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| Online Access: | https://journals.flvc.org/edis/article/view/114438 |
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| author | Andres Susaeta Chris Demers |
| author_facet | Andres Susaeta Chris Demers |
| author_sort | Andres Susaeta |
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Would a forest landowner be economically better off growing a forest for pulpwood production with a short rotation instead of growing the same forest for sawtimber production with a longer rotation? To help answer this and related questions, this 4-page fact sheet written by Andres Susaeta and Chris Demers and published by the UF/IFAS School of Forest Resources and Conservation presents two approaches to determine the profitability of a forest stand. The net present value (NPV) of a single rotation provides the criterion to choose between different forest project investments of equal lives, whereas the equivalent annuity approach (EAA) is employed when forest project investments have different time lengths.
http://edis.ifas.ufl.edu/fr421
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| format | Article |
| id | doaj-art-78a0ad53e43249a3893b6b9e92a256c3 |
| institution | Kabale University |
| issn | 2576-0009 |
| language | English |
| publishDate | 2019-12-01 |
| publisher | The University of Florida George A. Smathers Libraries |
| record_format | Article |
| series | EDIS |
| spelling | doaj-art-78a0ad53e43249a3893b6b9e92a256c32025-02-08T05:49:34ZengThe University of Florida George A. Smathers LibrariesEDIS2576-00092019-12-0120196Determining the Net Present Value of Timber Investments and Comparing Investments of Different RotationsAndres Susaeta0Chris Demers1University of FloridaUniversity of Florida Would a forest landowner be economically better off growing a forest for pulpwood production with a short rotation instead of growing the same forest for sawtimber production with a longer rotation? To help answer this and related questions, this 4-page fact sheet written by Andres Susaeta and Chris Demers and published by the UF/IFAS School of Forest Resources and Conservation presents two approaches to determine the profitability of a forest stand. The net present value (NPV) of a single rotation provides the criterion to choose between different forest project investments of equal lives, whereas the equivalent annuity approach (EAA) is employed when forest project investments have different time lengths. http://edis.ifas.ufl.edu/fr421 https://journals.flvc.org/edis/article/view/114438net present valueequivalent annuity approachsingle rotation |
| spellingShingle | Andres Susaeta Chris Demers Determining the Net Present Value of Timber Investments and Comparing Investments of Different Rotations EDIS net present value equivalent annuity approach single rotation |
| title | Determining the Net Present Value of Timber Investments and Comparing Investments of Different Rotations |
| title_full | Determining the Net Present Value of Timber Investments and Comparing Investments of Different Rotations |
| title_fullStr | Determining the Net Present Value of Timber Investments and Comparing Investments of Different Rotations |
| title_full_unstemmed | Determining the Net Present Value of Timber Investments and Comparing Investments of Different Rotations |
| title_short | Determining the Net Present Value of Timber Investments and Comparing Investments of Different Rotations |
| title_sort | determining the net present value of timber investments and comparing investments of different rotations |
| topic | net present value equivalent annuity approach single rotation |
| url | https://journals.flvc.org/edis/article/view/114438 |
| work_keys_str_mv | AT andressusaeta determiningthenetpresentvalueoftimberinvestmentsandcomparinginvestmentsofdifferentrotations AT chrisdemers determiningthenetpresentvalueoftimberinvestmentsandcomparinginvestmentsofdifferentrotations |