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Financial Maturity Of Timber And Maximum Net Present Values, Steven H. Bullard

Faculty Publications

Simple financial maturity guidelines recommend harvesting timber when its rate of value growth becomes less than or equal to the highest rate that can be earned in other investments of equal risk. Several authors have shown that fin ancial maturity guides are consistent with maximizing economic c riteria such as net present va lue , but their results are sometimes accepted by fore sters and land managers without being fully understood. In this article , financial maturity guides are derived in a way that is easily understood, simply by maximizing the present value of all future net income.