Abstract
SUMMARY: The present value of future genetic improvement in a closed population is taken to be proportional to the sum of discounted changes in the population mean. It is shown that, if T animals are available for selection and R is the discount rate per generation, the selection intensity which maximizes present value is a function of TR. If TR is greater than 15, under 10% of the population should be selected. It is then shown how T can be chosen to maximize profit if the value of genetic improvement and cost of testing are known. The theory is illustrated by a numerical example.

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