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(A) You are considering growing upland pine trees and want to set up a rotation. Your costs include $300/acre for site prep and planting in

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(A) You are considering growing upland pine trees and want to set up a rotation. Your costs include $300/acre for site prep and planting in year 0 and $100/acre for commercial thinning in year 12. Your revenue is projected to be $2,000/acre from a commercial thinning in year 25 and a $20,000/acre final harvest in year 50. What is the Net Present Value of this investment if your discount rate is 7%? (B) Now suppose you are considering the same investment from part (A). However, there is a $20 per acre per year administrative cost added to it. What is the NPV of this investment if your discount rate is still 7%

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