Principle of Dynamic Economic Analysis Procedure and Its Application in Stand Silviculture Model

A dynamic economic analysis procedure with compacted cash flow was presented.In this procedure,each investment and benefit be expressed as a function of cost elements,e.g.cost of regeneration could be described as:regeneration cost/hm2=(site cleanlabour force demand/hm2+site preparation labour force demand/hm2+planting labour forcedemand/hm2)*wage per labour per day+seedling price * stems/hm2.Compacted cash flowcould be transferred to present value with multiplier[(1+i)f-1)]/[i(1+i)t+f-1],here i=discount rate,t=initial time of a period with equal investments and benefits,f=years of theperiod,and with which dynamic economic analysis can be done more smoothly than with ordinary cash flow.With a sophisticated data adapter,the algorithm could be easily involved into stand simulation system.Set of cost elements,recorded in a text file,could be redesignedand the functions,written in a equation library,could be recreated by user,so that a standsilviculture model would be more suitable to the occasion concerned.