Publications
Publications
- October 2000
- HBS Case Collection
Tree Values
By: Richard S. Ruback and Kathleen Luchs
Abstract
Describes two alternative tree cutting strategies. The first is to cut all trees that are at least 12 inches in diameter at breast height. The second is to thin the forest by cutting less desirable trees immediately and harvesting the crop trees later. The case presents information for students to estimate the cash flows for each alternative. After estimating the corresponding cash flows, students have the opportunity to use discounted cash flow techniques to decide when to cut trees under each strategy and to select which strategy maximizes the value of the forest.
Keywords
Strategy; Decision Making; Cash Flow; Decision Choices and Conditions; Management Practices and Processes; Value Creation; Forestry Industry
Citation
Ruback, Richard S., and Kathleen Luchs. "Tree Values." Harvard Business School Case 201-031, October 2000.
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