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? 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 Plant plus mechanical Natural Age Plant plus chemical site Plant preparation site preparation 10 0. 20 0. 1 2. 30 12 51 91 40 13 98 172 234 50 87 210 291 382 60 190 309 408 483 70 288 410 499 552 80 383 490 554 801 90 458 540 595 639 100 517 577 828 860 110 565 608 653 684 120 605 633 661 669 130 637 652 665 673 140 664 60 668 673 150 678 663 072 673 Table B- Treatment costs of management strategies Plant phs mechanical site Plant Plant plues chemical site Natural prgaration pqaration Treatment Cost $0.00 $1050.00 $1250.00 $1800.00