Plantation by Peter Lohmander

Welcome to the plantation economics Java-program page!

Here, you have the option to change the number of plants per hectare, n, and your assumptions concerning many other things of importance. You instantly get the present value per hectare.
The variables and parameters are:

F = Fix cost per hectare at the time of the investment (site preparation etc.).
c = Cost per plant (the price per plant when you buy them + the cost of the plantation activity).
n = The number of plants per hectare.
x = The probability that a plant survives.
r = The rate of interest in continuous time.
t = The number of years until it the harvest takes place.
p = Net price per cubic metre when it is time to harvest.
v = The average volume production per hectare and year during the life of the trees in the
      age interval [0 - t] in case the number of surviving stems is 2000 per hectare.
L = Land value per hectare after the harvest.
U = Relative production ( = The real production divided by the production which would take place
       with 2000 surviving stems per hectare).
VOL = The harvest volume, cubic metres, per hectare.
nsurv = The number of surviving stems per hectare.
MVOL = The average volume per stem when it is time to harvest.
Present Value = - F - c*n + EXP(-rt)(p*VOL + L)

                                                                                                   Good Luck!

                                                                                                                           Peter Lohmnader

Background and References:
See this link and the included references:


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