Discounted Cash Flow Methods for Urban Forestry: Standard and Specialized Formulas


Discounted cash flow (DCF) analysis (or the income approach) is a method of valuation often used in forests managed for timber production objectives to obtain the present value of cash flows, or the value in current day dollars considering interest. But it can be challenging to use in urban forestry and arboriculture, as the cash flows for benefits and costs from single trees or urban forests are difficult to determine, and the mathematical structure of DCF analysis is somewhat complicated.
Kristin S. Peterson, Former Graduate Research Assistant, Clemson University and Dr. Thomas J. Straka, Department of Forestry and Natural Resources, Clemson University

Technology, Urban Forestry, and Policy and Administration

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