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Cost Component Dollars Per MBF
Fall and buck $13.56
Yard and load 44.21
Trucking 30.72
Road construction 6.00
Road maintenance/fees 1.00
Excise tax 6.00
Contingency 5.00
Total $106.49
Mr. Prochnau thus determined that the gross value of the
merchantable timber (before applying any discount) was
$37,646,264.
Mr. Prochnau then estimated the value of reproduction timber
using a growth-discount analysis that grows reproduction timber
(i.e., timber younger than 50 years) to age 50 and then discounts
the harvest value to present value. The delivered log price is
determined in the same manner as for merchantable timber. To
this price, Mr. Prochnau applied an appreciation rate of 1.5
percent and deducted carrying charges of $6 per acre. This
future value was then discounted to present value using a rate of
7 percent. Using this approach, Mr. Prochnau estimated the value
of reproduction timber at $36,252,683, before making a comparable
sales adjustment.
Mr. Prochnau estimated the value of bare land by site class
using a comparable sales analysis. Mr. Prochnau utilized 21
comparable sales between December 1983 and March 1988, ranging in
size between 20 and 16,394 acres. He adjusted these comparable
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