Discount rates used for forest valuation - results of 2011 survey (2012)
Eleven forest valuers responded to the survey and provided information on 14 New Zealand transactions between mid-2009 and 2011. The average reported IDR (implied discount rate) for each of these transactions was in the range 4.4 to 8.4% for posttax cashflows and 7.8 to 10.6% for pre-tax cashflows. Overall averages were 6.7% (post-tax cashflows) and 9.3% (pre-tax cashflows), compared to 6.9% and 8.6% in the 2009 survey. Forest valuers also provided the discount rate they use to estimate the market value of a forest. They are using discount rates for forest valuation that are on average 0.1% lower than in 2009.
CitationManley B (2012). Discount rates used for forest valuation - results of 2011 survey. New Zealand Journal of Forestry. 56(4). 21-28.
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