Description of the two alternative strategies for cutting down trees. First, cut down all the trees that are at least 12 inches in diameter at breast height. Second, to thin the forest by cutting less desirable once the trees and harvest the trees later. The case provides information for students to assess the cash flows for each alternative. After evaluation of the relevant cash flows, students have the opportunity to use discounted cash flow techniques to decide when to cut trees for each strategy and to choose which strategy maximizes the value of forests. "Hide
by Richard S. Ruback, Kathleen S. Luchs Source: Harvard Business School 3 pages. Publication Date: October 16, 2000. Prod. #: +201031- PDF-ENG