A northern hardwood stand regenerates naturally, with no regeneration cost. Every 65 years, it can be harvested to yield 12 mbf/ac of hardwood sawtimber at $300/mbf and 25 cd/ac of pulpwood at $15 per cord. Thinning at age 30 yields 20 cd/ac of pulpwood at $15 per cord. The annual property taxes are $2.50/ac, and annual management expenses are $3.50/ac. Assume that the discount rate is 5%.

a) Compute LEV per acre.

b) Suppose that the stand is currently 25 years old. Compute the per acre value of the 25-year old stand given the above information.