Abstract

SYNOPSIS A planned forestry project which appears to be profitable for one rotation will not necessarily be profitable in the long term. It can change to an unprofitable project after a number of profitable rotations. Sustained profitability will depend on the pattern of real or relative price changes. In this paper a method is described that takes real price changes into account and which can be used to determine the profitability of forestry projects after the application of any specific number or rotations.

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