User's manual for TIMRET: a micro-computer program for silviculture
Contents
1. L nee SES 3 E oo en NS E gt E s A im gt D D vw Y ent ms 7 Sal or ES 35 Es 4 e Pz E eu D 5 do ac i gt 2 S A y r A A Y a LA ao LA lu l 4 AM Natural Resources Ressources naturelles Canada Service canadien des for ts Canadian Forest Canada Service ES The Canadian Forest Service s Northwest Region is responsible for fulfilling the federal role in forestry research regional development and technology transfer in Alberta Saskatchewan Manitoba and the Northwest Territories The main objectives are research and regional development in support of improved forest management for the economic social and environmental benefit of all Canadians The Northwest Region also has responsibility for the implementation of federal provincial forestry agreements within tts three provinces and territory Regional activities are directed from the Northern Forestry Centre in Edmonton Alberta and thereare district offices in Prince Albert Saskatchewan and Winnipeg Manitoba The Northwest Region is one of six regions and two national forestry institutes of the Canadian Forest Service which has its headquarters in Ottawa Ontario Service canadien des for ts r gion du Nord Ouest repr sente le gouvernement f d ral en Alberta en Saskatchewan au Manitoba et dans les Territoires du Nord Ouest en ce2. tion and tree improvements can be calculated and compared by using any of the following criteria 1 internal rate of return 2 present net worth 3 profitability index and 4 benefit cost ratio TIMRET calculates returns from treatment costs and benefits such as increased yield size premiums logging cost reductions and product from trees removed by treatment The output of the financial analysis can be presented in a tabular or graphical form Examples of these inputs and examples of TIMRET calculations are provided R SUM Ce manuel d crit l utilisation du programme d ordinateur TIMRET TIMber RETurns con u pour aider le gestionnaire forestier valuer la productivit des investissements en sylviculture Des rendements partir de plusieurs sc narios comme le renouvellement forestier le d gagement l espacement l claircissement les coupes de d gagement la fertilisation ainsi que l am lioration des arbres peu vent tre ainsi calcul s et compar s l aide de l un ou l autre des crit res suivants 1 le taux interne de rendement 2 la valeur nette actuelle 3 l index de rentabilit et4 le rapport b n fice co t TIMRET calcule le rendement partir des co ts de traitement et les b n fices tels le rendement accru l accroissement de la dimension la r duction des co ts d abattage et les produits tir s des arbres sacrifi s par le traitement Le produit de l analyse finale peut tre pr s
3. but TIMRET can begin or end at any specified time Often the starting point is a major expenditure or treatment The analyst needs to identify the first and last investment activity Beginning activities include site clearing site preparation natural regeneration and planting some intermediate treatments such as cleaning An analysis requires four data groups that must be entered to identify and define a case The data entry order is arbitrary To add an entry move to an empty row of the editing area and type in informa tion for each of the following Title It contains description of cost or benefit To enter a title move cursor to the left most column A and type it Benefits Costs It describes and gives numeri cal values to treatment costs yields products and prices To enter a benefit cost type the negative cost value into the cost column B or the positive benefit value into the benefit column C Timing of Treatments After entering descrip tion and numerical values of the cost or benefit the Data error checking is performed when calcu lating financial criteria If an error occurs or infor mation simply requires change editing will be needed There are two ways to edit data One way of editing is to typeover Move the cursor over the cell that needs to be changed and type in an new value This is done while in the default typeover mode known as a READY mode See mode indicator at top right corner of scr
4. Return ss bird aan a a Present Net Worth rs riaa a a o AAA Rs Ge Benefit Cost Ratio 3 ieee seu aa aa oi Profitability Index ies as ate ee a rues Graphic Outputs x 42 0 Gone ae AS A Se ends de SAVE LOAD DELEIE Mis ine bw il See oe KE Saving the Current Case ces 2 ua Hak oe ee PS a are BA ss Rethevine a Case acu ww ad hameau Sree ad oe e ADVICE WHEN USING TIMRET Distinguishing Cases from Worksheets Making Backups gir ies Box ai eae ia eS hla es ee Verifying Inputs x oe ee wR ew Oa A A RS OO OO OO Y O OO ON O1 Or Or O O O Or or AS CO CO CO CO Oo CO CO ND N N TROUBLE SHOOTING GUIDE 7 Too Many Cash Flows gt paaa eip ee Red Se eo Near 7 Long Investment Periods ws oia a a a a 7 GENERAL INFORMATION 7 ACKNOWLEDGMENT saata de du nm ae hee a sente 7 APPENDIXES 1 TIMRET Quick Reference 8 2 Suggested Readings 9 FIGURES 1 Output from TIMRET showing profitability analysis of lodgepole pine thinning by present net worth 5 2 Output from TIMRET showing profitability analysis of lodgepole pine thinning by benefit cost ratio 5 3 Output from TIMRET showing profitability analysis of lodgepole pine thinning by profitability index 6 TABLES 1 Screen display of TIMRET financial
5. qui a trait aux recherches foresti res l am nagement du territoire et au transfert de technologie Cet organisme s int resse surtout la recherche et l am nagement du territoire en vue d am liorer l am nagement forestier afin que tous les Canadiens puissent en profiter aux points de vue conomique social et environnemental Le bureau de la r gion du Nord Ouest est galement responsable de la mise en oeuvre des ententes foresti res f d rales prouinciales au sein de ces trois provinces et du territoire concern Les activit s r gionales sont g r es partir du Centre de foresterie du Nord dont le bureau est Edmonton Alberta on trouve galement des bureaux de district a Prince Albert Saskatchewan et a Winnipeg Manitoba La r gion du Nord Ouest correspond l une des six r gions de Service canadien des for ts dont le bureau principal est Ottawa Ontario Elle repr sente galement deux des instituts nationaux de foresterie de ce Minist re USER S MANUAL FOR TIMRET A MICRO COMPUTER PROGRAM FOR SILVICULTURE INVESTMENT ANALYSIS W J Ondro and W Marshall Canadian Forest Service Northwest Region Northern Forestry Centre 1995 Minister of Supply and Services Canada 1995 Catalogue No Fo46 236 1995E ISBN 0 662 23068 X This publication is available at no charge from Natural Resources Canada Canadian Forest Service Northwest Region Northern Forestry Centre 5320 122 Street Edmonton Alber
6. 9 Brumelle S L Carley J S Vertinsky 1 B Wehrung D A 1988 Evaluating silvicultural investments an analytical framework For Econ Policy Anal Res Unit Univ B C Vancouver British Columbia Work Pap 116 Buongiorno J Gilless J K 1987 Forest management and economics MacMillan Publishing Company Ltd New York New York Cassler G L Anderson B L Aplin R D 1984 Capital investment analysis using discounted cash flows Grid Publishing Inc Columbus Ohio Fraser T Tustin J R Szumidlo Z 1977 Financial evaluation of forestry projects New Zealand Forest Service Wellington New Zealand Inf Ser 75 Gittinger J P 1982 Economic analysis of agricultural projects 2nd edition The John Hopkins University Press Baltimore Maryland Gregerson H M Contreras A H 1979 Economic analysis of forestry projects U N Food Agric Org Rome Italy For Pap 17 Gunter J E Haney H L 1984 Essentials of forest investment analysis Oregon State Univ Book Stores Inc Corvallis Oregon APPENDIX 2 SUGGESTED READINGS Hawkins C J Pearce D W 1971 Capital investment appraisal The MacMillan Press Ltd London U K Hamnula O 1971 The effect of average stand diameter on tree length logging cost Pulp Pap Mag Can 72 2 96 100 Heaps T Pratt B 1988 The social discount rate for silvicultural investments B C Min For Victoria British Columbia and B C For Res Dev Agr
7. 99 0 58 0 29 0 08 0 18 0 31 Note specified inflation rate is 0 Internal rate of return is 6 49 for 3 10 discount rate Cash flows assumed to occur at the beginning of the year Costs or revenues occurring in Year 1 are discounted for one year Data Steps describing forest management prac tices can be specified and entered in any order The software can compute returns for manage ment scenarios that include several treatments or can evaluate profitability of a specific treatment either for a portion of a rotation or the whole rotation Management Scenario Analysis Most finan cial analyses are done to find out treatment profit ability for a stand or an entire forest In order to analyze various management scenarios the analyst should specify all management activities or Press lt RETURNS key after every entry Cursor control is done by the arrow keys FINANCIAL ANALYSES practices from the start to the end of the rotation Results of the analyses will reflect the returns for the treatment s costs and their timing Marginal Analysis These determine the effect of an additional treatment such as better site prepa ration thinning or more fertilizer on wood yield Financial returns are based on cash flow differences between a stand that received the extra treatment and one that did not Starting and Ending Analysis Cases Atypical forest investment starts with the establishment of a new stand or forest
8. Return IRR is the discount rate that equates discounted costs and revenues IRR is the return on investment if all immediate revenues are reinvested in the project IRR is not affected by the discount rate If the IRR can not be determined then ERR will be shown indicating an error Present Net Worth PNW is discounted bene fits less discounted costs A positive value indicates return exceeding the discount rate Present net worth ha Discount rate Figure 1 Output from TIMRET showing profit ability analysis of lodgepole pine thin ning by present net worth ACTIVITY LIST to eliminate the results window Simply re execute the Window macro to restore the results window A complete activity list can be printed by executing the Print macro Alt P choosing Text from the menu and typing in the number of lines that need to be printed FINANCIAL ANALYSIS RESULTS Benefit Cost Ratio B C is the present value of the benefits divided by the present value of the costs value greater than 1 0 indicates that the discounted benefits exceed costs Profitability Index PI is the present net worth divided by treatment cost It is used to rank invest ment in order of profitability Graphical Output The built in graphic capa bility of the Lotus 1 2 3 version 3 1 TIMRET package allows instantaneous on screen display of calcu lated financial criteria and a printed copy Figs 1 3 This feature is also
9. T The current value of the cell will appear at the top of the screen for editing Use arrow keys to remove characters and backspace or delete keys to delete characters All other character keystrokes will cause that particular character to be inserted at the position of the cursor Press Enter when satisfied and the mode will once again be in the READY mode Press Esc any time during editing to abort the edit Treatment can be any forestry activity or prac tice such as planting thinning site preparation or forest renewal These activities that are expressed in costs and benefits for the investment The speed and reliability of the analysis depends on how activities are entered and specified Erroneous specification of activities will produce wrong analyses TIMRET checks for and alerts the user to obvi ous entry errors such as a positive cost or negative benefit but cannot check for treatments cost For example 400 ha for thinning is as valid as 40 ha in TIMRET The analyst can enter up to 100 transactions per case Description This is a 30 character description of the benefit cost being entered such as market value of increased yield Enter a description that defines the entire investment benefit cost and return flow pattern Present Value ha Enter this value of benefits costs in units of dollars per hectare ha A cost is entered as a negative number a benefit as a positive number Because TIMRET allows u
10. a backup copy of the TIMRET disks upon receipt for safe storage These programs are not copy protected or copyrighted Do not use the original program and data disks except to make additional copies SAVE LOAD DELETE a file name that identifies the case If this file already exists the analyst will be presented with another menu with three options Cancel Replace and Backup Choose Cancel to abort the save operation Replace to write over the old file and Backup if the old file is still needed Retrieving a Case Execute the File macro Alt F choose Retrieve from the menu and type in the file name of the case to be retrieved ADVICE WHEN USING TIMRET Always Verify Inputs Look out for some of the following common errors that can be made when using this program e important treatments left out especially costs e errors in data e number of years exceeds 200 e relative year values are not correctly calculated Too Many Cash Flows Long investment cases can result in more than 100 cash flows a number that must be reduced to conduct an analysis An excessive number of cash flows can occur by includ ing several annual costs such as management fees and leases in the transactions One solution is to combine similar activities within a year such as all activities with the same tax treatment Another op tion is to combine costs or revenues spread over several years into fewer payments For example instead of using an ann
11. available on other financial analysis software packages To display a graph on the screen execute the Graph macro Alt G choose the financial criteria to graph and then choose the style of graph Hit any key to return to editing To print the graph most recently plotted execute the Print macro Alt P and choose Current graph from the menu 9 5 kn o oO o m Discount rate Figure 2 Output from TIMRET showing profit ability analysis of lodgepole pine thin ning by benefit cost ratio e D D 2 Discount rate Figure3 Output from TIMRET showing profit ability analysis of lodgepole pine thin ning by profitability index TIMRET allows the analyst to save and load cases from a data disk To save or load cases using a floppy disk it is a good idea to first change the working directory to the floppy drive This is accomplished by executing the File macro Alt F and choosing Directory from the menu At the prompt enter in the new working directory to be the path of one of the floppy disks e g A B Saving the Current Case Execute the File macro Alt F choose Save from the menu and type Distinguishing Cases from Worksheets There is no way to distinguish a saved TIMRET case from a regular Lotus worksheet To avoid error and con fusion save all TIMRET cases on a separate data disk or in a separate directory Making Backups As a precaution one should make
12. eement Rep 071 Honer T G 1967 Standard volume tables and merchantable conversion factors for the commercial tree species of central and eastern Canada Can Dep For Rural Dev For Inf Rep FMR X 5 Johnstone W D 1976 Variable density yield tables for natural stands of lodgepole pine in Alberta Fish Environ Can Can For Serv Ottawa Ontario For Tech Rep 20 Ondro WJ Constantino L F 1990 Financial returns from fertilizing 70 year old lodgepole pine near Hinton Alberta For Chron 66 3 287 292 Row C Kaiser H F Sessions J 1981 Discount rate for long term forest service investments J For 179 6 367 369 Sudgen R Williams A H 1978 Principles of practical cost benefit analysis Oxford University Press Oxford U K Vasievich J M Frebis R Wiethe R W 1984 QUICK SILVER The forestry investment analysis program Version 2 0 PC U S Dep Agric For Serv Southeast Cent For Econ Res Triangle Park North Carolina
13. een The other way to correct data is through the EDIT mode This mode is useful when the analyst spacing thinning or fertilizing can be beginning activities for other investments Ending activities are usually final harvests and timber disposal Year Markers TIMRET sets the base year for the investment at the first specified activity All cash flows are discounted back to this If an earlier base year is desired add a null activity to set it suchas C B O ENTERING DATA timing of the treatment must be specified The first year of the treatment is entered in the first year column D and the last year of the treatment is entered in the last year column F The number of years between treatments is specified in the step year column E Economic Parameters These are the discount rates and inflation rate Default values are provided upon initial execution of TIMRET macro To modify the economic parameters execute the Calculate macro Alt C to get the Calculate menu Choose Inflation to modify the inflation rate or Discount to modify one of the discount rates The new values are entered at the top of the screen To restore default discount rates execute the Calculate macro then choose Discount then Default EDITING DATA wishes to avoid retyping the contents of the entire cell To edit data using this method move the cursor over the cell that requires editing and press the F2 key See mode indicator change to EDI
14. ent sous forme de graphiques ou de tableaux Vous y trouverez des exemples de calculs pr par s par TIMRET 111 1v CONTENTS INTRODUCTION aa nia BRS eS et pie dede s oe 1 STARTING TIMRET 00000 gamers A Ke Gow Ha ek r en 1 bd TERMINOLOGY via rias A ib R Ra FINANCIAL ANALYSES usa ta tS 8 a a Management Scenario Analysis Marginal Analysis curia times pas era esrhe sx Starting and Ending Analysis Cases Year Markers u garu ane AI er ANS SN A A ENTERING DATA ps a SOS tea TES does TE aoea aE de dl ah Oe ee ras Be Om a eG Benefits COSts zc a a a SR e wR SG GA BSS RB HBR ee Timing Of Treatments sara de a oe ee OR Oe o a Economic Parameters BIDE TUNG DATA LE LR a pho Oe Ao tb oe Ab Dwg eat Da res TY DCOVED a AA ee Se eee eS AGS Pdi Modesa ets da het a a a TREATMENT 203402 A SE e AU a Sd ie a DESCUIDO tie re a AAA A AEN A ya Pr sent Value ti A ee AA RE Fie Year as ia DM do a a Se e nue East Year e a ds As ad a Be Be SOS A A ES ee Reais tae Gs ECONOMIC PARAMETERS Discount Rates discernir da LR SR eh Oe We Gee a Inflation Rate 4 4 sega be ae Dale we ee oe Sb ee Se ew a es DISCOUNTING iia es Sos we oe eee ee aus CASIVEIOWS iaa a a ds da aa he BS ACIER 240 diia E da air FINANCIAL ANALYSIS RESULTS o Tabular Presentation Huiles e Mi RRS Ge See EA rs Internal Rate of
15. est year the year with the lowest number Length ofinvestment the difference between the first and last year can not exceed 200 years See trouble shooting guide if investment period exceeds 200 years ECONOMIC PARAMETERS revenues that occur in Year 1 are therefore dis counted for one year to the beginning of Year 0 Each activity is expanded into one or more cash flows cost or revenue amount is calculated for the first year and repeated every step year until the last year If the first year is the same as the last year only one cash flow is computed No cash flows will be computed for years beyond the last specified for the transaction The extended cash flow amount is computed where N is the number of years from the base year of the activity A list of benefit cost activities is displayed at all times except when displaying a graph or calcu lating financial criteria Several activities are dis played at once but the user can scroll through all of them by using the arrow keys and the Page Up and Page Down keys A full screen activity list can be obtained by executing the Window macro Alt W Tabular Presentation Financial returns are computed after executing the Calculate macro Alt C and selecting the Calculate option Within a few seconds the results will be displayed in the financial analysis section of the screen The four financial criteria are shown for the six discount rates selected Internal Rate of
16. information on treatment benefit cost and stand age at activity or harvest 2 2 Screen display of TIMRET financial returns at rotation 2 NOTE The exclusion of certain manufactured products does not necessarily imply disapproval nor does the mention of other products necessarily imply endorsement by Natural Resources Canada In today s increasingly complex decision environment the forest manager needs a simple quick user friendly and flexible financial analysis software to help make decisions about possible forest management scenarios TIMRET a recently developed forestry investment analysis software package is a tool developed by the authors that is intended to meet this need TIMRET an acronym for TIMber RETums is a software package that can be run on any IBM compatible personal computer that has a 3 1 or higher version of the DOS based Lotus 1 2 3 spreadsheet package Inputs to the program specify discount rates and management scenarios such as forest fertiliza tion spacing thinning release tree improvement and wetland drainage The program can calculate retums for any management practice that brings improved timber benefits such as increased stem wood yields log size premiums logging cost reductions from harvesting bigger trees and products from trees removed by treatments The analyst can file selected steps computer runs such To start TIMRET insert the TIMRET floppy diskette into yo
17. l Resources Canada Canadian Forest Service Edmonton Alberta for providing useful review comments The Basics of Using TIMRET TIMRET is a Lotus 1 2 3 worksheet equipped with a number of macros to help the user work efficiently All macros are executed by using an Alt lt letter key gt combination In order to run a macro the Alt key must be held down while the letter key is pressed All macros described below can also be accessed through the use of a main menu Alt M The macros also take advantage of Lotus style menus that appear at the top of the screen To use a Lotus menu move the highlighted cursor over the menu choice and hit the Enter key or simply type the first letter of the menu choice To edit blocks of data in the editing area use the Lotus 1 2 3 commands of Copy Move and Range Erase Do not use Worksheet Delete Row or Work sheet Insert Row Other useful features available in Lotus 1 2 3 are the F2 key edit an entry and the F10 key redisplay graph Refer to your Lotus 1 2 3 manual for more information on these and other editing commands The TIMRET Macros Alt C Calculate When the user adds deletes or edits new data the results in the bottom window will not change In order to see the results of changes made this macro must be used APPENDIX 1 TIMRET QUICK REFERENCE Alt F File This macro is used to bring a case into memory from disk or to save the current edited data to disk Using thi
18. nrestricted input for the description of the benefit cost it cannot determine whether a Discount rates are annual rates in percent and can be real without inflation or nominal with inflation values Inflation rate is the average annual rate in per centexpected over the life of the investment Use an inflation rate of 0 for analyses done in real or constant dollar terms For discounting all cash flows are treated as if they occur at the beginning of the year Costs and TREATMENT transaction should be a cost or a benefit it is there fore important to enter the present value with the correct sign The program does check for this type of error First Year This means first year relative to Year 0 the year in which the benefit cost occurs This is a required input for all benefits costs analyses Last Year This means last year relative to Year 0 The actual number for the last year must be equal to or greater than that in the first year If the last year is equal to the first year the benefits and costs incurred in the latter will also apply to the former year Step Year This is the number of years between each occurrence of a benefit cost This is entered only if the benefit cost occurs more than once If the benefit cost occurs in a single year the field should be set to 1 First last and step years are expressed as stand age at renewal treatment and harvest TIMRET establishes the base year as the earli
19. s and general information are given STARTING TIMRET Type a tima enter enter enter if your drive is a or b tima enter enter enter if your drive is b Upon execution a title screen will appear for a short time after which the preloaded example will appear Tables 1 and 2 TERMINOLOGY Timber yield and depletion expressed in dollars per hectare ha All timber volumes are con verted to m ha for computing volumes for a stand or forest The volumes are multiplied by market value of stumpage in m or foot board measure fbm and entered Table 1 activity or harvest Treatment ha Benefit cost item Benefit Treatment cost n a Trees removed by treatment 220 Market value of increased yield 680 Log size premium 65 Conventional logging cost reduction 880 a Denotes the number of years between first and last activity n a not applicable Screen display of TIMRET financial information on treatment benefit cost and stand age at Stand age at activity or harvest year Cost First Step Last 400 25 1 25 n a 25 1 25 n a 60 1 60 n a 60 1 60 n a 60 1 60 Denotes the difference in logging cost between untreated and treated stands Table 2 Screen display of TIMRET financial returns at rotation Discount rate Criterion 3 4 5 6 8 10 Present net worth ha 397 50 231 80 114 60 31 42 70 09 122 18 Benefit cost ratio 1 99 1 58 1 29 1 08 0 82 0 69 Profitability index ratio 0
20. s macro the user can save the current case to disk retrieve a case from disk into memory or change the working directory Only files previously saved with TIMRET can be loaded in without error Alt G Graph This macro allows the user to graph PNW B C or Pl versus the discount rate The macro will prompt the user for the type of data and style of graph desired Once chosen the graph will be displayed on the screen Hit any key to return editing Alt P Print This macro is used for printing either the edited data and results or a graph of one of the economic statistics Once the user has specified what to print the macro will pause and tell the user to ready the printer Once the printer is ready the user should hit a key to send the selected output to the printer Alt W Window The economic results normally appear in a win dow at the bottom of the screen If full screen editing is desired execute this macro eliminate the window Simply execute the macro again to reestablish the window Alt X eXit Exits the user from TIMRET as well as Lotus 1 2 3 Be sure to save data with Alt F before exiting Anderson F J 1979 Ontario reforestation policy benefits and costs Can Public Policy 3 1 336 347 Alemdag 1 S Honer T G 1973 Relationships between breast height and stump diameter for eleven tree species from eastern Canada Environ Can Can For Serv For Manage Inst Ottawa Ontario Inf Rep FMR X 14
21. ta T6H 355 A microfiche edition of this publication may be purchased from Micromedia Ltd Place du Portage 165 H tel de Ville Hull Qu bec J8X 3X2 A lt b IN 4 Y at Ply 3 oe P PS ip ng ast CANADIAN CATALOGUING IN PUBLICATION DATA Ondro W J User s manual for TIMRET a micro computer program for silviculture investment analysis Includes an abstract in French Includes bibliographical references ISBN 0 662 23068 X Cat no Fo46 236 1995E 1 Timber Economic aspects Computer programs 2 Forest management Economic aspects Computer programs 3 Silvicultural systems Economic aspects Computer programs I Marshall W Wade II Northern Forestry Centre Canada II Title IV Title A micro computer program for silvicultural investment analysis SD431 5066 1995 634 9 2 0285 C95 980072 7 This report has been printed on Canadian recycled paper Ondro W J W Marshall 1995 User s manual for TIMRET a micro computer program for silviculture investment analysis Nat Resour Can Can For Serv Northwest Reg North For Cent Edmonton Alberta ABSTRACT This manual describes the usage of a micro computer software package TIMRET TIMber RETurns which was developed to aid the forest manager in evaluating profitability of silvicultural investments Returns from a range of invest ment scenarios e g forest renewal cleaning spacing thinning release fertiliza
22. ual management fee apply a double amount every second year This will have only a minor effect on the outcome Appendix 1 is a quick reference guide that can help in this software operation Suggestions for further reading are listed in Appendix 2 User comments are welcome Contact W J Ondro Natural Resources Canada Canadian Forest Service Northwest Region Northern Forestry Centre 5320 122 Street Edmonton Alberta T6H 3S5 403 435 7210 TROUBLE SHOOTING GUIDE Long Investment Periods TIMRET does not accept an investment period if it extends beyond 200 years Although this is unlikely to occur one solution would be to reduce arbitrarily the invest ment length to 200 years by compressing cash flows into a shorter period The present value of costs or revenues that occur in the distant future is very small so the effect on the outcome is small A dollar received in 200 years is worth less than 0 1 cents today after discounting at 5 GENERAL INFORMATION Neither Natural Resources Canada nor the authors warrant this program in any way Natural Resources Canada will not be held liable for dam ages Of any kind that result from the use of this software All efforts have been taken to ensure that this software performs as described TIMRET is within the public domain and can be copied without restriction Trade names are mentioned for information purposes only ACKNOWLEDGMENT The authors thank D MacIsaac Natura
23. ur drive The program can be run on a 286 386 or 486 SX or DX IBM compatible personal computer with Lotus 1 2 3 version 3 1 installed Ensure that the directory containing Lotus 1 2 3 is included in the Path statement in the Autoexec bat file path C 123R3 Revenues benefits appear as positive number on display and printouts Costs appear as negative numbers on display and printouts 1 TIMRET diskette can be obtained from the senior author INTRODUCTION as cost and benefits into individual cases that can be saved on disk retrieved and modified for further analysis With TIMRET the analyst can compute cash flow from investments before income taxes for six discount rates Summaries of result can be displayed and viewed on the screen and printed TIMRET can calculate financial returns by hectare stand or whole forest Each case is defined by a series of steps that specify costs and revenues Net revenues are generated from these steps and are subsequently used to calculate financial returns This manual is organized in sections The first section explains how to start up the TIMRET disk ette The following sections explain terminology used the type of financial analyses TIMRET can be used for and entering and editing of data Sub sequent sections describe the presentation of results of the financial analysis i e tabular and graphical outputs In the concluding sections of this manual advice to TIMRET user
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