Net Present Value Window

Use the net present value window to show a prognosis of the net present value for the treatment unit and treatments you have selected.

Net present value

In the net present value tab, revenues, costs, nets, and totals are shown for the current treatment unit, the treatments you have applied, and discount rate you have selected.

Discount rate

Select the discount rate you want to use.

Soil expectation value

The year zero value of a perpetual series of even aged rotations for the future generations of the treatment unit. A number of alternatives are generated for the future generation, and the alternative with the highest soil expectation value for the given discount rate is chosen.

Terminal value

The net present value of all future treatments at the time of the last treatment or growth period you have applied. The terminal value includes the soil expectation value (discounted to the year of the terminal value) and the net present value of the remainder of the current generation (see Final felling settings for first generation).

Total net present value

The net present value at year 0. This value includes the discounted nets of the treatments you have applied, the discounted nets of the remainder of the current generation (see Final felling settings for first generation), and the soil expectation value (discounted to the end of the current generation).

Period

Five year period.

Year

Year.

Treatment

Treatment.

Gross revenue

Gross revenue of treatment.

Cost

Cost of treatment.

Net

Gross revenue - cost.

Discounted net

Net discounted to the given year.

Acc total

The sum of all discounted nets up to current period/treatment.

Acc total incl rate

The sum of all discounted nets, with rate added, up to current period/treatment.

Final felling settings for first generation

In the final felling settings for first generation tab, you can specify when final felling of the current generation should be applied. This setting affects the terminal value, the total net present value, and the soil expectation value (if no final felling is selected).

No final felling

Continuous management is applied to the current generation (not yet implemented).

According to the minimum allowable final felling age

Final felling is done as early as possible according to SVL (The Swedish Forestry Act).

Minimum allowable final felling age + n years

Final felling is done a given number of years after the minimum allowable final felling age.

Optimal final felling period (highest net present value)

Different alternatives for the current generation are created up to the end of the planning horizon (at least to the minimum allowable final felling age). The alternative with the highest net present value is chosen.

Fix period

Final felling is done in the given period.

• Note

If the current period already contains a final felling, these settings are not used.

• Note

If the current period contains some other treatment, growth to next period is done first.

• Note

Thinnings are applied according to the thinning template.

• Note

The planning horizon may be temporarily extended so that it includes the minimum allowable final felling age.