# Forest Finance Calculator Decision Key

## What do you want to do?

### Find out what money in the future will be worth today

#### For a single sum:

Use the Present Value of a Single Sum calculation.

#### For a series of payments that occur:

- Every year for a finite period of time – Use the Present Value of a Terminating Annual Series calculation.
- Every year forever – Use the Present Value of a Perpetual Annual Series calculation.
- Regular multi-year increments for a finite period of time – Use the Present Value of a Terminating Periodic Series calculation.
- Regular multi-year increments forever – Use the Present Value of a Perpetual Periodic Series calculation.

### Find out what money today will be worth in the future

#### For a single sum:

Use the Future Value of a Single Sum calculation.

#### For a series of payments that occur:

- Every year – Use the Future Value of a Terminating Annual Series calculation.
- Regular multi-year increments – Use the Future Value of a Terminating Periodic Series calculation.

### Determine an annual payment or investment

#### The annual payment needed to pay off a current debt:

Use the Installment Payment calculation.

#### The annual investment needed to accumulate a future amount:

Use the Sinking Fund calculation.

### Compute the net present value of forest management cash flows

#### The net present value (NPV) of cash flows to the end of a single harvest rotation

Use the Net Present Value calculation.

#### The NPV of cash flows for perpetual harvest rotations starting with bare land:

Use the Soil Expectation Value calculation.

#### The NPV of cash flows for perpetual harvest rotations starting with an existing stand:

Use the Forest Value calculation.

### Adjust interest rates for inflation

#### Convert a nominal interest rate to a real one:

Use the Nominal to Real Interest Rate calculation.

#### Convert a real interest rate to a nominal one:

Use the Real to Nominal Interest Rate calculation.

## Are you unsure how to answer the questions above?

Please review WSU Extension Manual EM030: Financial Analysis Principles and Applications for Private Forest Lands