Investment appraisal in forestry with particular reference to conifers in Britain

The purpose of investment appraisal is to show the relative profitability of alternative courses of action. The measure of profit used is net discounted revenue at a chosen discount rate. Attention is concentrated on conifers in pure stands. The assumptions adopted in preparing tables of discounted revenue at 3, 5 and 7 per cent are the predictions of Forestry Commission yield tables. A generalised curve relating standing tree values with diameter at breast height is assumed. Discounted revenues for the major conifer species by yield classes are tabulated in the appendices. Illustrative examples of their use are presented for appraisal of land purchase, choice of species, fertilisation, beating up, weeding and cleaning, crop protection, roading, thinning, timing of felling and crop replacement. Taxes and grants often affect costs and returns to the private or corporate owner and thus influence commercial decisions which should be based on post-tax and post-grant costs and revenues