Time factor and investment calculations in timber growing. Theoretical fundamentals
The role of the time factor is discussed from the viewpoint that investment calculations are expected to be used to transform and condense information and not necessarily to show the optimum. Some general conclusions are drawn concerning the recommendable form of such a calculation when used by a consultant advising a forest owner. A few of the practical problems arising in the connection of applications to timber growing are also discussed.
In conclusion, a recommendation was developed for the calculation procedure to be used in the so-called contractual research into the profitability sequence of forest improvements. It would seem advisable to carry out the calculations using both varying interest rates and varying time horizons. In addition, it is justifiable also to present the expected series of cash flow changes, such as they are, among the results. Further studies will follow.
The PDF includes a summary in Finnish.
Published in 1971