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735 $ 710 $ 697 Total acreage 6,500 Years since original planting 20 1P pond value $ 735 5 2P pond value $ 710 3P

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735 $ 710 $ 697 Total acreage 6,500 Years since original planting 20 1P pond value $ 735 5 2P pond value $ 710 3P pond value $ 697 Cash flow/acre from thinning $ 3,500 Years from today for harvest Harvest (MBF) to begin per acre 20 15.7 23.4 30 27.8 35 29.6 25 1P 20% 23% 27% 29% 2P 41% 45% 47% 49% 3P 39% 32% 26% 22% Defect rate Subcontractor cost (MBF) Road (MBF) Sale preparation and and administrative (MBF) $ $ 5% 160 65 $ 22 Excavator piling/acre Broadcast burning/acre Site preparation/acre Planting costs/acre $ $ 170 295 155 305 Nominal required return Inflation rate Tax rate 10.00% 3.70% 21% $ $ Conservation fund Conservation fund growth 5,000,000 3.20% Real required return 11 Cash flow from thinning Harvest in 20 years Revenue Tractor cost Road Sale preparation & admin Excavator piling Broadcast burning Site preparation Planting costs EBIT Taxes Net income (OCF) PV of first harvest Next thinning will occur in The effective real interest rate for this period is The real rate in the conservation fund is The effective real interest rate for the conservation fund for this period is 40 years, and will reoccur at this same interval. 0.00% 6.59% 1183.87% Aftertax cost of conservation $ Value of conservation at have $ (3.950,000.00) (4,283,652.78) PV of future thinnings PV of future harvests PV of conservation fund II Total NPV 735 $ 710 $ 697 Total acreage 6,500 Years since original planting 20 1P pond value $ 735 5 2P pond value $ 710 3P pond value $ 697 Cash flow/acre from thinning $ 3,500 Years from today for harvest Harvest (MBF) to begin per acre 20 15.7 23.4 30 27.8 35 29.6 25 1P 20% 23% 27% 29% 2P 41% 45% 47% 49% 3P 39% 32% 26% 22% Defect rate Subcontractor cost (MBF) Road (MBF) Sale preparation and and administrative (MBF) $ $ 5% 160 65 $ 22 Excavator piling/acre Broadcast burning/acre Site preparation/acre Planting costs/acre $ $ 170 295 155 305 Nominal required return Inflation rate Tax rate 10.00% 3.70% 21% $ $ Conservation fund Conservation fund growth 5,000,000 3.20% Real required return 11 Cash flow from thinning Harvest in 20 years Revenue Tractor cost Road Sale preparation & admin Excavator piling Broadcast burning Site preparation Planting costs EBIT Taxes Net income (OCF) PV of first harvest Next thinning will occur in The effective real interest rate for this period is The real rate in the conservation fund is The effective real interest rate for the conservation fund for this period is 40 years, and will reoccur at this same interval. 0.00% 6.59% 1183.87% Aftertax cost of conservation $ Value of conservation at have $ (3.950,000.00) (4,283,652.78) PV of future thinnings PV of future harvests PV of conservation fund II Total NPV

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