Abstract: The model ChargeOut! was developed to determine charge-out rates or rates of return for machines and capital equipment. This paper introduces a costing methodology and applies it to a piece of capital equipment. Although designed for the forest industry, the methodology is readily transferable to other sectors. Based on discounted cash-flow analysis, ChargeOut! provides more accurate financial outputs than traditional single-period models. ChargeOut! produces a break-even charge-out rate that will return any specified after-tax real rate of return over the economic life of the capital equipment. Alternatively, given a negotiated charge-out rate, the model produces net present values and real and nominal rates of return before tax and financing, before tax, and after tax. It also compares the negotiated charge-out rate with the calculated break-even rate, incorporates inflation, accounts for depreciation, and automatically conducts a sensitivity analysis. Graphs illustrate the major cost centers and cash flows. The model is both automated and flexible. Interpretation of ChargeOut!'s results requires some knowledge of discounted cash-flow analysis. The target audience is financial professionals in the logging industry or equipment owners who have some background in engineering economics. ChargeOut! is illustrated using representative data from a logging skidder; however, the methodology could be adapted to find charge-out rates or rates of return for any piece of capital equipment.

Key words: Charge-out rate, break-even analysis, capital equipment costing, machine rate, depreciation, inflation, discounted cash-flow analysis, industrial equipment, costs, cash-flow analysis

Abstract: ChargeOut!, a discounted cash-flow methodology in spreadsheet format for analyzing machine costs, is compared with traditional machine-rate methodologies. Four machine-rate models are compared and a common data set representative of logging skidders' costs is used to illustrate the differences between ChargeOut! and the machine-rate methods.The study found that the machine-rate methodologies were not standardized and the methodologies had differences in accounting for ownership, other fixed costs, and variable operating costs. The result was that two of the machine-rate models calculated hourly rates that were higher than needed to provide the specified return on capital, and two of the machine-rate models calculated hourly rates that were insufficient to provide the specified return. In contrast, ChargeOut!'s break-even rate returned exactly the specified return.Differences between the results calculated by the machine-rate methods occur because of different implicit assumptions used within the models' formus, largely because the machine-rate models are unable to properly incorporate the time value of money. Whereas ChargeOut! can be sufficiently constrained to approximately replicate a machine-rate calculation, doing so sacrifices much of ChargeOut!'s power and flexibility. Machine-rate models cannot be configured to replicate ChargeOut!'s calculations. Machine-rate models cannot be configured to calculate cash flows, allow for uneven costs or machine hours, incorporate loans that have a different life than the expected machine life, or perform an after-tax analysis. ChargeOut! can do all of these.

Key words: machine; charge-out rate; break-even analysys; capital equipment costing; machine rate; depreciation; inflation; discounted cash flow analysis

Abstract: COMPARE is a FORTRAN computer program resulting from a study to develop methods for comparative economic analysis of alternatives in industrial wood and bark energy systems. COMPARE provides complete guidelines for economic analysis of wood and bark energy systems. As such, COMPARE can be useful to those who have only basic familiarity with investment analysis of wood and bark energy systems. This report provides instructions on how to prepare data for COMPARE, information on how to use the program, sample data, sample output, and a listing of the program. COMPARE ranks investment alternatives according to the highest benefit cost ratio based on discounted energy values and cash flows. The use of a benefit cost ratio as a ranking criterion is analyzed and explained in an appendix to this report.

Key words: Energy, computer software, economic analysis, bark, cash flow analysis, investments, computer programs, COMPARE (Computer program), fuelwood, economic aspects

Abstract: RIPYLD is a computer program that optimizes the cutting yield from multiple-ripped boards. Decisions are based on automatically collected defect information, cutting bill requirements, and sawing variables. The yield of clear cuttings from a board is calculated for every possible permutation of specified rip widths and both the maximum and minimum percent yield solutions are saved. Solutions include rip cut and crosscut locations as well as the percent yield of clear cuttings.

Key words: Cross cutting, lumber, utilization, defects, ultrasound, computer software, scanning, maximization, sawline placement

Abstract: CROMAX simulates crosscut-first, then rip operations as commonly practiced in furniture manufacture. This program calculates cutting yields from individual boards based on board size and defect location. Such information can be useful in predicting yield from various grades and grade mixes thereby allowing for better management decisions in the rough mill. The computer program CROMAX was written in ASCII FORTRAN on the University of Wisconsin's UNIVAC 1100/80 computer. The complete program listing is included as an appendix.

Key words: Crosscut, rip, cutting yields, defect location, lumber grades, rip sawing, management, sawmilling, computer software, simulation, wood defects, CROMAX (computer program), cross cutting, lumber recovery studies, computer programs, saws and sawing, model investigations

Abstract: This documentation is meant to accompany CVal, a downloadable spreadsheet tool. CVal was constructed for foresters, other land management advisors, landowners, and carbon credit aggregators to evaluate the direct benefits and costs of entering into contracts for carbon sequestered in managed forests and forest plantations. CVal was designed to evaluate Exchange Forestry Offset (XFO) contracts on the Chicago Climate Exchange (CCX), although the methodology ould be adapted for other trading mechanisms and agricultural sequestration projects. Versions of CVal are available both with and without macros. Although all calculations can be done in the version without macros, the macros version has buttons and automations that make the calculations convenient. Our general finding is that it is critical in managed forest projects to determine whether carbon accumulated prior to entering the contract can be counted. Depending on the contract year and length, this can triple the revenue from CCX contracts. If it is not possible to count pre-contract year carbon, then it may not be economically worthwhile to enter the program unless it is extended. Other critical variables having a large effect on the overall profitability include the trade price of sequestered carbon, the carbon sequestration rate, and the hurdle rate (the minimum required rate of return on investment) used. Up-front and annual costs are important, but overall profitability is not quite as sensitive to these costs as it is to the previously mentioned variables. Users are expected to enter their own data to evaluate the feasibility of specific projects.

Key words: Carbon sequestration; carbon valuation; carbon contracts; carbon credits; Exchange Forestry Offset (XFO) contracts; Chicago Climate Exchange (CCX); decision support; discounted cash flow analysis

Abstract: The DEP computer program is a modified discounted cash flow computer program designed for analysis of problems involving economic analysis of wood drying processes. Wood drying processes are different from other processes because of the large amounts of working capital required to finance inventories, and because of relatively large shares of costs charged to inventory insurance and tax. DEP's flexibility allows calculation of rate of return, break-even transfer prices, or break-even facilities costs. Data input requirements are simplified into basic analytical components that are explained and illustrated with example analyses.

Key words: Lumber, investment, computer software, economic analysis, drying, costs, energy, seasoning, economic aspects, DEP (computer program)

Abstract: EVALUE, a FORTRAN program, was developed to provide a framework for cash flow analysis of investment opportunities. EVALUE was designed to assist researchers in evaluating investment feasibility of new technology or new manufacturing processes. This report serves as user documentation for the EVALUE program. EVALUE is briefly described and notes on preparation of a data deck are provided. Sample program input, sample output, and a complete listing of the program are provided.

Key words: Wood-using industries, economic aspects, EVALUE (computer program), computer software, cash flow analysis, forest products, cash flow, financing, sawmills

Abstract: The Fuel Value Calculator is a tool that can be used to compare typical unit costs of various fuels. Originally developed by A.B. Curtis, Jr., of the USDA Forest Service's Southern Region, the fifth edition of the Calculator has been published in cooperation with the USDA Forest Service, Forest Products Laboratory, and the Pellet Fuels Institute in Arlington, Virginia. The following information is to be used in conjunction with the Calculator, which is available by contacting the Forest Products Laboratory.

Key words: software, excel, fuel, heating, latent, moisture content

Abstract: X-ray diffraction techniques have the potential to decrease the time required to determine microfibril angles dramatically. In this paper, we discuss the latest version of a curve-fitting toll that permits us to reduce the time required to evaluate MFA X-ray diffraction patterns. Further, because this tool reflects the underlying physics more accurately than existing tools, we expect it to yield more accurate estimates of MFA.

Key words: Microfibril angle, X-ray diffraction, Java, interactive graphics, mechanical properties of wood, forest monitoring, wood quality, computer simulation

Abstract: PARVCOST, a FORTRAN program, was designed to develop economic and financial analyses of systems for manufacturing particleboard. In the program, costs and requirements of wood are calculated as are chemicals and energy per unit of finished board products. Estimates are made of sensitivity of the finished product costs to changes in unit costs of energy and raw materials. Weight statistics are computed for the finished product and for the profit contribution ratio for values of given products. An appendix is included with a sample program output, two versions of data decks and modifications, notes on use of the two versions, and a listing of the program and documentation cards.

Key words: Computer software, simulation models, economic analysis, feasibility studies, particleboards, waferboards, flakeboards, chemicals, energy, raw materials

Abstract: The Purdue Plane Structures Analyzer (PPSA) is a computer program developed specifically for the analysis of wood structures. It uses recognized analysis procedures, in conjunction with recommendations of the 1982 National Design Specification for Wood Construction, to determine stresses and deflections of wood trusses and frames. The program offers several options for the analysis of member capacity, depending on lateral support conditions, strength property variations, and critical load assumptions. Tabulated output provides a summary report of the input analog as well as individual member and total structure response to assumed load conditions. Program operation requires knowledge of material properties, member connections, boundary conditions, and loads. The user also must have a knowledge of structural analysis to interpret the output. This report provides guidelines for program use and interpretation of results and will be helpful to structural engineers and designers.

Key words: Stresses, Wood strength, Frames, Computer software, Trusses, Strength testing, Wood, Deflection, Matrix analysis, PPSA-I

Abstract: SouthPro is a Microsoft Excel add-in program that simulates the management, growth, and yield of uneven-aged loblolly pine stands in the Southern United States. The built-in growth model of this program was calibrated from 991 uneven-aged plots in seven states, covering most growing conditions and sites. Stands are described by the number of trees in 13 size classes for softwood, soft hardwood, and hard hardwood species. SouthPro allows managers to predict stand development, by year and for many decades, from a specific initial diameter distribution. Cutting regimes are specified by the timing and intensity of harvest. Cutting intensity can be set by a free target distribution or a basal area1maximum diameter1q-ratio (BDq) target distribution, or as a diameter-limit cut. Diameter distribution, basal area, volume, income, net present value, and stand diversity by species group and size class are shown in tabulated and graphic form. This manual provides suggestions for working with Excel, describes program installation and activation of SouthPro, and gives background information on the SouthPro growth model. The manual includes a comprehensive tutorial that explains how to start the program; enter simulation data; generate BDq distributions; add, delete, and retrieve setup files; execute single and multiple simulations; plot summary statistics; and produce stock-and-cut tables and marking guides. Limitations of the model and appropriate interpretations of its predictions are discussed.

Key words: Forest management, Computer software, Pinus taeda, Uneven-aged stands

Abstract: In studies on wood strength, researchers sometimes replace experimental unit allocation via random sampling with allocation via sorts based on nondestructive measurements of strength predictors such as modulus of elasticity and specific gravity. This report documents TT, a computer program that implements recently published methods to increase the sensitivity of such bpredictor sortc experiments. The report consists of annotated keyboard sessions and computer output from runs of TT.

Key words: Computer software, Sampling, Sorting, Experimental design