27984000 19984000 41269680 69629045 92667586 16507872 27851618 37067034

27984000 19984000 41269680 69629045 92667586 16507872

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27,984,000 19,984,000 $ 41,269,680 $ 69,629,045 $ 92,667,586 16,507,872 27,851,618 37,067,034 $ 24,761,808 $ 41,777,427 $ 55,600,551 $ 63,945,808 $ 69,761,427 $ 75,584,551 $ 40,585,200 $ 43,257,205 $ 46,105,394 43,257,205 46,105,394 - $ (2,672,005) $ (2,848,189) $ 46,105,394
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$ 97,952,000 $ 69,968,000 $ 49,984,000 Year 2 Year 3 Year 4 $ 63,945,808 $ 69,761,427 $ 75,584,551 58,993,600 (2,672,005) (2,848,189) 46,105,394 $ 61,273,803 $ 66,913,238 $ 180,683,545 $ 47,648,445 $ 45,885,227 $ 109,261,305 $ 113,013,389 $ (55,986,611) $ (0.512)
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Chapter 7 Bunyan Lumber, LLC Input area: Total acreage 5,000 Years since original planting 20 1P pond value $ 620 2P pond value $ 605 3P pond value $ 595 Cash flow/acre from thinning $ 1,000 Years from today for harvest Harvest (MBF) to begin per acre 1P 20 14.1 16% 25 16.4 20% 30 17.3 22% 35 18.1 24% Defect rate 5% Tractor cost (MBF) $ 140 Road (MBF) $ 50 Sale preparation and and administrative (MBF) $ 18 Excavator piling/acre $ 150 Broadcast burning/acre $ 300 Site preparation/acre $ 145 Planting costs/acre $ 225 Nominal required return 10.00% Inflation rate 3.70% Tax rate 35% Conservation fund $ 250,000 Conservation fund growth 3.20% Output area:
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Real required return 6.08% Cash flow from thinning $ 5,000,000 Harvest in 20 years Revenue $ 40,359,135 Tractor cost 9,870,000 Road 3,525,000 Sale preparation & admin 1,269,000 Excavator piling 750,000 Broadcast burning 1,500,000 Site preparation 725,000 Planting costs 1,125,000 EBIT $ 21,595,135 Taxes 7,558,297 Net income (OCF) $ 14,036,838 PV of first harvest $ 4,315,098 Next thinning will occur in 40 years, and will reoc The effective real interest rate for this period is 958.17% The real rate in the conservation fund is 6.59% The effective real interest rate for the conservation fund for this period is 1183.87% Aftertax cost of convservation $ (162,500.00) Value of conservation at harvest $ (176,226.22) PV of future thinnings $ 521,825.80 PV of future harvests $ 450,345.94 PV of conservation fund $ (49,182.52) Total NPV $ 5,238,087.63 Harvest in 25 years Revenue $ 47,051,600 Tractor cost 11,480,000 Road 4,100,000
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Sale preparation & admin 1,476,000 Excavator piling 750,000 Broadcast burning 1,500,000 Site preparation 725,000 Planting costs 1,125,000 EBIT $ 25,895,600 Taxes 9,063,460 Net income (OCF) $ 16,832,140 PV of first harvest $ 3,852,930 Next thinning will occur in 45 years, and will reoc The effective real interest rate for this period is 1321.11% The effective real interest rate for the conservation fund for this period is 1666.38% Value of conservation at harvest $ (172,251.67) PV of future thinnings $ 378,470.46 PV of future harvests $ 291,644.04 PV of conservation fund $ (34,941.27) Total NPV $ 4,488,103.20 Harvest in 30 years Revenue $ 49,699,440 Tractor cost 12,110,000 Road 4,325,000 Sale preparation & admin 1,557,000 Excavator piling 750,000 Broadcast burning 1,500,000 Site preparation 725,000 Planting costs 1,125,000 EBIT $ 27,607,440 Taxes 9,662,604 Net income (OCF) $ 17,944,836 PV of first harvest $ 3,058,593 Next thinning will occur in 50 years, and will reoc The effective real interest rate for this period is 1808.52%
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The effective real interest rate for the conservation fund for this period is 2330.24% Value of conservation at harvest $ (169,473.53) PV of future thinnings $ 276,469.34 PV of future harvests $ 169,121.42 PV of conservation fund $ (24,986.89) Total NPV $ 3,479,196.45 Harvest in 35 years Revenue $ 52,057,863 Tractor cost 12,670,000 Road 4,525,000 Sale preparation & admin 1,629,000 Excavator piling 750,000 Broadcast burning 1,500,000 Site preparation 725,000 Planting costs 1,125,000 EBIT $ 29,133,863 Taxes 10,196,852 Net income (OCF) $ 18,937,011 PV of first harvest $ 2,403,388 Next thinning will occur in 55 years, and will reoc The effective real interest rate for this period is 2463.10% The effective real interest rate for the conservation fund for this period is 3243.60% Value of conservation at harvest $ (167,509.87) PV of future thinnings $ 202,995.97 PV of future harvests $ 97,575.62 PV of conservation fund $ (17,950.88) Total NPV $ 2,686,008.85
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2P 3P 36% 48% 40% 40% 43% 35% 45% 31%
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ccur at this same interval.
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ccur at this same interval.
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