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