Matti Kärkkäinen. (1982). Näkökohta sisäisen korkokannan laskemisesta. Silva Fennica vol. 16 no. 4 article id 5170. https://doi.org/10.14214/sf.a15085

English title: Note on the calculation of the internal rate of return.

Original keywords: metsäekonomia; kannattavuuslaskenta; korkokanta; sisäinen korkokanta

English keywords: costs; profitability; forest economics; internal rate of return

Abstract | View details | Full text in PDF | Author Info

In forestry, a classical method of evaluating the profitability of an outlay is to calculate the internal rate of return. If there are many outlays and returns over a period, analytical determination of the internal rate is difficult and requires simulation methods. However, if there is only one outlay and one return, the computation is easy. In this paper, some formulae were developed for practical purposes. The equations also show how the return changes as the ratio between the return and the outlay changes.

The PDF includes a summary in English.

Kärkkäinen, E-mail: mk@mm.unknown

Category : Research article

article id 583, category Research article

Hans Fredrik Hoen, Tron Eid, Petter Økseter. (2001). Timber production possibilities and capital yields from the Norwegian forest area. Silva Fennica vol. 35 no. 3 article id 583. https://doi.org/10.14214/sf.583

Keywords: forest management; timber production possibilities; rate of return; capital yield

Abstract | View details | Full text in PDF | Author Info

How intensely should a forest be grown? This is a fundamental question in the process of formulating policy guidelines for the management of a forest area, both at the individual property level as well as at the national level. The question is related to a number of factors; the objective(s) of the forest owner, the productivity of the forestland, the initial growing stock, the accessibility within the forest, assumptions regarding future prices and costs and the required real rate of return. This paper presents an applied analysis with the objective of mapping possible future paths for the growing stock on, and timber harvest from the productive forest area in Norway. The analysis is deterministic. The regeneration strategy is a key factor for the long run development of a forest and is thus given particular attention. The analysis is restricted to deal with timber production only and maximisation of the net present value of the forest area is used as the objective function. The required real rate of return is varied and used as the driving force to find the best (optimal) level of intensity in silvicultural management and thus optimal paths for harvesting and growing stocks.

Hoen, Agricultural University of Norway, Dept. of Forest Sciences, P.O. Box 5044, N-1432 Ås, Norway E-mail: hans.hoen@isf.nlh.no
Eid, Agricultural University of Norway, Dept. of Forest Sciences, P.O. Box 5044, N-1432 Ås, Norway E-mail: te@nn.no
Økseter, Agricultural University of Norway, Dept. of Forest Sciences, P.O. Box 5044, N-1432 Ås, Norway E-mail: po@nn.no

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