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1f) The plantation option would be for 100 acres. The reforestation company charges $200/acre for the planting (seedlings included) and you will have a cost
1f) The plantation option would be for 100 acres. The reforestation company charges $200/acre for the planting (seedlings included) and you will have a cost associated with reducing stand density (precommercial thin) costing $160/acre at stand age 10 years. You will have a thinning (harvest) revenue of $1500/acre at 30 years and the final harvest would be at 40 years at which point you would harvest $8400/acre. The plan calls for repeating this 40-year rotation in perpetuity. What is the Benefit Cost Ratio of this plantation in perpetuity? 1f) The plantation option would be for 100 acres. The reforestation company charges $200/acre for the planting (seedlings included) and you will have a cost associated with reducing stand density (precommercial thin) costing $160/acre at stand age 10 years. You will have a thinning (harvest) revenue of $1500/acre at 30 years and the final harvest would be at 40 years at which point you would harvest $8400/acre. The plan calls for repeating this 40-year rotation in perpetuity. What is the Benefit Cost Ratio of this plantation in perpetuity
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