Forest Valuation

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q = ratio or multiple (such as i .0^) . Q = sum of series. Then, by demonstration above (III), C=«-<^. (Q.) The sum of future values of rentals forms such a series. Should the ratio be less than i, each succeeding term will be diminished in value, which gives a decreasing series. The sum of this series is obtained by the same formula, but a more convenient form of expression, obtained by multiplying both numerator and denominator by — i , is ()=«(if^). (Q.) 58 FOREST VALUATION The sum of present or discounted values of rentals forms such a descending series. These formulae apply either to temporary rentals, with a limited number of terms, or to perpetual rentals, with an infinite number of terms. For an infinite increasing series Q = ^ ^^^ ~ '-* = 00 (infinity). (Q3) q- I For an infinite decreasing series, since the value of §'" dimin- ishes in direct proportion to the exponent used, g* = o. Therefore Q=^-i^^^ = ^. (Q.) 1 -q I -q 81. Present, Expectation, or Capital Value of Temporary Annual Rentals.

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