This guide has been prepared to assist forest managers and planners in the use of economic analysis techniques. It uses simplified analytical methods, hands-on exercises, and two case studies to provide a working understanding of the principles and techniques of financial and economic analyses. Topics covered include: the unique characteristics of timber production; the time value of money and cash flows; different series of cash flows (present and future values); decision criteria such as payback period, rate of return, net present value, cost-benefit ratio, equivalent annual income, and annual rent; applications of criteria to single stand level decisions and to forest-wide decisions; special topics, including recent developments in discounting theory; and accounting for perspectives from private enterprise, the public sector, and society as a whole. The appendix contains two case studies on jack pine thinning and regeneration.