Financial Analysis of Silviculture Investment & Economic Returns (FAN$IER)

Financial Analysis of $ilviculture Investment and Economic Return (FAN$IER) is a financial analysis software program.  It replaces two previous programs:

  • FAN$Y (Financial Analysis $ystem) in SYLVER
  • TIPSY Economist in TIPSY 

FAN$IER includes both interactive and batch versions.

FAN$IER calculates and reports several financial values. It helps forest managers make informed silviculture investment decisions at the stand level.  Outputs include:

  • Net Present Value (NPV)
  • Site Value (SV), also known as soil expectation value or land rent
  • Internal Rate of Return (IRR)

A side-by-side comparison of many silvicultural regimes is also possible.

FAN$IER imports specially formatted product log and lumber yield tables from SYLVER and TIPSY. These reflect the predicted outcomes of specific silviculture regimes.  FAN$IER utilizes B.C.-based default values for:

  • Costs: silviculture, logging, hauling and milling
  • Prices: log and lumber values by grade
  • Economic assumptions: discount and inflation rates, base year

Users can override any of these defaults.

FAN$IER also incorporates special features supporting return-on-investment (ROI) analyses for the ministry’s Forests for Tomorrow and Land Based Investment Strategy.  This includes calculating incremental IRR for silviculture regime pairs (treated and untreated), ignoring sunk costs. Refer to the Forests For Tomorrow Return on Investment website for more information.