What is the dollar value of the timber stand at stand age 10 years? AWhat is the dollar value of the timber stand at stand age 20 years? A What is the dollar value of the timber stand at stand age 30 years? Hint: These are the discounted benefits from timber production.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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explains it correctly and not use of excel.

 

Answer the following questions about a Longleaf Pine Plantation Owner trying to determine the optimal
time to harvest a stand of timber. The price per cubic foot of marketable timber is $10. Harvesting
costs per cubic foot are $3 and one-time planting costs are $5,000. The interest rate is 4%.
Stand Age (years) Volume (cubic feet) Value of Timber Costs Net Benefits
10
1,000
20
2.000
30
3,000
What is the dollar value of the timber stand at stand age 10 years?
A What is the dollar value of the timber
stand at stand age 20 years?
A What is
the dollar value of the timber stand at stand age 30 years? Hint: These are the
discounted benefits from timber production.
Transcribed Image Text:Answer the following questions about a Longleaf Pine Plantation Owner trying to determine the optimal time to harvest a stand of timber. The price per cubic foot of marketable timber is $10. Harvesting costs per cubic foot are $3 and one-time planting costs are $5,000. The interest rate is 4%. Stand Age (years) Volume (cubic feet) Value of Timber Costs Net Benefits 10 1,000 20 2.000 30 3,000 What is the dollar value of the timber stand at stand age 10 years? A What is the dollar value of the timber stand at stand age 20 years? A What is the dollar value of the timber stand at stand age 30 years? Hint: These are the discounted benefits from timber production.
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