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domestic and export markets. He then subtracted the following
logging costs:
Cost Component Dollars Per MBF
Fall and buck $17
Yard and load 58
Haul 45
Road construction 7
Road use/maintenance 2
Slash 1
Scaling 3
Administrative 5
Excise tax 9
Reforestation 7
Total $154
Mr. Granvall also subtracted a profit and risk factor equal to
$4/MBF.7 Finally, Mr. Granvall applied a comparable sales
adjustment factor of .61, which is equivalent to a 39-percent
discount, to the net log value to arrive at an indicated value
for merchantable timber of $18/MBF, or $14,341,122 total.
Mr. Granvall computed his comparable sales adjustment factor
by averaging the transaction prices for four comparable sales
that he selected and adjusted for size differences. The four
comparable sales selected by Mr. Granvall occurred between July
1983 and March 1985 and ranged in size between 2,904 and 134,000
acres.
7He estimated the profit and risk at 12.5 percent of the
delivered log value (net of logging costs) and adjusted that
amount for contract profit, which was already included within the
delivered log values.
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Last modified: May 25, 2011