Pope & Talbot, Inc., & Subsidiaries - Page 10

                                       - 10 -                                         
          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.                                                       





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011