Difference between revisions of "Net present value"
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Sum of discounted revenues minus costs, for an approximately infinite time horizon, and with the real discount rate set by the user. For even-aged management, Heureka approximates an infinite time horizon 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 time interval equal to the time elapsed between the last two cuttings projected. | Sum of discounted revenues minus costs, for an approximately infinite time horizon, and with the real discount rate set by the user. For even-aged management, Heureka approximates an infinite time horizon 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 time interval equal to the time elapsed between the last two cuttings projected. | ||
| − | The reason for | + | For each alternative generated in even-aged management, Heureka generates up to three unique rotations. The reason for not just repeating the second management regime is to allow for the possible chang in growth conditions 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, and consequently the management regime should be adapted to that. 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 years will give higher yields that trees planted today. |
[[Category:Definitions]] | [[Category:Definitions]] | ||
[[Category:Result Variables]] | [[Category:Result Variables]] | ||
[[Category:Alternative Summary Results]] | [[Category:Alternative Summary Results]] | ||
Revision as of 15:19, 19 February 2016
Sum of discounted revenues minus costs, for an approximately infinite time horizon, and with the real discount rate set by the user. For even-aged management, Heureka approximates an infinite time horizon 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 time interval equal to the time elapsed between the last two cuttings projected.
For each alternative generated in even-aged management, Heureka generates up to three unique rotations. The reason for not just repeating the second management regime is to allow for the possible chang in growth conditions 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, and consequently the management regime should be adapted to that. 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 years will give higher yields that trees planted today.