I'd be interested to know how these figures were calculated. Trees and forests are very clearly valuable, but I'm still curious as to how these values were assigned.
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· 8 years ago
i find it strange that where it says to preserve the trees, it also says that the calculations don't include the value of its lumber.
While I appreciate the point of the post, a tree is not worth $193,250 today. If you wanted to calculate the present value of the tree, you would have to discount the future cash flow value of the tree. So, for example, if the tree produced $625 worth of oxygen in Year 5, you need to discount that value back in today's dollar. Assuming a discount factor of 9%, $625/(1.09)^5=$406. So while I appreciate the message of the sign, it is not correct from a mathematical perspective.
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