Using Break-even Analysis for Replanting Decisions in Damaged Pine Stands
Authors: Caulfield, Jon P.; Teeter, Lawrence D.
Source: Southern Journal of Applied Forestry, Volume 12, Number 3, 1 August 1988 , pp. 186-189(4)
Publisher: Society of American Foresters
Abstract:A break-even technique based on land expectation value is used to evaluate the economic consequences of plantation replant/no-replant decisions following a catastrophic loss. The after-tax break-even point, defined as the percentage volume loss incurred before it pays to replant, initially increases with stand age, levels off for several years, then decreases late in the rotation. The cost of an incorrect replant/no-replant decision follows a similar pattern, and is small when actual mortality is close to the break-even point. The break-even point and the cost of a wrong decision at a given stand age are both strongly influenced by the cost of capital. South. J. Appl. For. 12(3):186-189.
Document Type: Journal Article
Affiliations: School of Forestry and Alabama Agricultural Experiment Station, Auburn University, Auburn, AL 36849
Publication date: 1988-08-01
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