Discounted Cash Flow Methods for Urban Forestry: Standard and Specialized Formulas
2011/10/20
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
SREF-DiscountedCashFlowUrbanForestArticle2.pdf
—
PDF document,
330Kb
13
SREF-UF-002
