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5. The Forest District Manager has given you the following yield information (Table A) for four different management strategies to re- establish White Spruce in

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5. The Forest District Manager has given you the following yield information (Table A) for four different management strategies to re- establish White Spruce in the Prince George Region after harvest or other disturbance such as fire. The yields are for above average site productivity. She wants you to a) Identify what strategies will meet the Government's new policy that all silvicultural investments be financially viable, and b) identify an "optimal" forest management strategy The cost information for each management strategy is given in Table B. Market research indicates the value of the merchantable timber has a 0.5 probability of being $30 per cubic meter and 0.5 probability of being $50 per cubic meter. The government recommends a real rate of interest between 2 and 4 percent be used to evaluate all public investments. c) Using the yield information in Table A and the Cost information in Table B above, calculate the site value (land expectation value) and optimal rotation ages for all scenarios and all management strategies. d) What would you recommend to your manager and why? You need to use a spreadsheet to calculate approximate answers to the problems. Submit details of calculations and formulas used to receive full marks.Table A- Merchantable yields (m3/hecatare) for four management scenarios of White spruce Natural strategy involves allowing stand to reforest naturally. Plant strategy involves planting seedlings on unprepared land. Plant plus chemical site preparation strategy involves planting the stand with seedlings after applying an herbicide to kill unwanted vegetation. Plant plus mechanical site preparation strategy involves planting seedlings after site is prepared using machines that destroy unwanted vegetation and create linear mounds of exposed soil for seedlings. Silviculture Management Strategy Age Natural Plant Plant plus Plant plus chemical site mechanical preparation site preparation 10 O O O 20 O 30 12 5 1 40 13 98 172 234 50 87 210 291 362 60 190 309 408 483 70 288 410 499 5 50 80 3 83 490 554 90 458 540 595 639 100 517 577 628 860 110 565 808 653 864 120 605 633 86 1 130 637 652 685 673 140 684 660 673 150 678 863 672 673Table A- Treatment costs of management strategies Natural Plant Plant plus Plant plus chemical site mechanical site preparation preparation Treatment Cost $0.00 $ 1050.00 $1250.00 $1800.00

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