ESTIMATED COST-BENEFIT CALCULATION


INITIAL INVESTMENT
   
NUMBER OF TREES
$
PRICE PER UNIT
$ 105
TOTAL COST OF INVESTMENT
$
 


FINANCIAL RETURN FORECAST ILLUSTRATION
       
INCREASED
COST AT SALE
CURRENT
0%
CONVENTIONAL
1%
ESTIMATED
3%
_______________________________________________________________________
       
COST PER SALE
$ 520
$ 610
$ 834
$
$
$
       
5% TECA ECUADOR’S COMMISSION
$
$
$
 
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__________________
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ESTIMATED REVENUES
$
$
$
TIMES YOUR ACQUISITION COST
x
x
x
       
TECA’S HISTORICAL YIELD DOES NOT GUARANTEE FUTURE PERFORMANCE.


The final profit making is subject to three mayor variables: increasing wood market prices at harvest stage, quality and volume of wood. Normally we obtain between 0.70 to 0.90 m³ per tree unit, taking in consideration a conservative average of 0.75 m³ per tree as a reference. All these are estimated calculations exclusively used for its informational value, lacking of significance at the time of settlement.

Forest investment have little or no relation to other endeavors; as the world supply of Teak dwindles, the price of this exotic and magnificent wood will continue to rise in an environment were offer is currently limited.