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A company owns a tract of timber that will keep growing for a number of years. It calculates that the timber's value less the cost

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A company owns a tract of timber that will keep growing for a number of years. It calculates that the timber's value less the cost of harvesting is currently $47,600 and that this figure will grow by 10% in the next year and by 5% in the following year. If the cost of capital is 8%, when should the company harvest the timber? Today Year 1 Year 2 Harvest a third of the timber each year

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