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Economic appraisal for the fruit tree assets was widely applied to the field of policy, research, and extension. This study was performed by using the research results of National Horticultural Research Institute and the standard income analysis data of Rural Development Administration to present the asset appraisal of the Census of National Wealth Statistics of 1997 to the Ministry of Agriculture and Forestry for the plant (fruit tree) and to suggest a basic data on fruit policy and fruit farm management. Rearing period is the growing process of fruit trees until break-even point. Rearing cost is calculated by cost analysis and present value of fruit tree. The rearing period of a dwarf apple tree was 8 years and the rearing cost was the total investment by the end of 7th year, which was 4,995,560 won per 10a. After rearing period the revenue and cost were evaluated into the asset appraisal of fruit tree during production period. After 5 years the present value of a 10-year old dwarf apple tree will be 1,370,668won. The establishment cost per l0a was 384,274 won for a dwarf apple tree, 44,336 won for a pear (high density). The rearing period was 17 years for an apple tree, 8 years for a dwarf apple tree and a pear (general density). The value of fruit trees was analyzed by fruits and tree ages. To purchase an orchards and establish a new orchard, people need to analyze the investment of fruit farming. When the net investment calculated by the present value of investment minus present value of cash flow was positive, it was considered as a profitable project. When a farmer purchased a 3 year old pear orchard at a price of 1,640,000 won, it was estimated that after 2 years he could gain net profits of 2,000,000 won. It was evaluated as a profitable project whose internal rate of returns was 17.4 percent, which was much higher than interest rate of 10 percent.
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