Difference between revisions of "Net present value"
m (Peder Wikström moved page Net present value to Net present value) |
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| − | + | Sum of discounted revenues minus costs for an infinite time horizon. For even-aged management, an infinite is approximated in Heureka by assuming that the third forest rotation management regime will be repeated in perpetuity. For uneven-aged management, the last cutting is assumed to be repeated in perpetuity with a cutting interval equal to time elapsed between the last two cuttings projected. | |
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| + | The reason for calculating three generations is Heureka, where each rotation is typically 50-100 years long, and together stretches far beyond the last planning period considered in an analysis, is to take into account that the growth conditions may changed over time. The climate model, if activated in a simulation, affects site fertility so that a certain rotation will have a different growth potential than the previous one. The growth of plantations will also be affected by at which time planting is done, since breeding effects is assumed to increase over time, for example trees planted in twenty trees will give higher yields that trees planted today. | ||
Revision as of 15:04, 19 February 2016
Sum of discounted revenues minus costs for an infinite time horizon. For even-aged management, an infinite is approximated in Heureka by assuming that the third forest rotation management regime will be repeated in perpetuity. For uneven-aged management, the last cutting is assumed to be repeated in perpetuity with a cutting interval equal to time elapsed between the last two cuttings projected.
The reason for calculating three generations is Heureka, where each rotation is typically 50-100 years long, and together stretches far beyond the last planning period considered in an analysis, is to take into account that the growth conditions may changed over time. The climate model, if activated in a simulation, affects site fertility so that a certain rotation will have a different growth potential than the previous one. The growth of plantations will also be affected by at which time planting is done, since breeding effects is assumed to increase over time, for example trees planted in twenty trees will give higher yields that trees planted today.