Fare 2700

The table below displays the net benefits associated with harvesting a stand of trees at various harvest ages, in a single harvest model. Assume that a discount rate of 10% has been applied, and that the price of timber and marginal cost of harvest remain constant over time. Age of the stand (years) 25 50 75 100 125 Total Benefit $100,000 $150,000 $175,000 $160,000 $150,000 (PV[Harvest Revenue]) Total Cost (Planting Cost + PV[Harvest $125,000 $140,000 $155,000 $145,000 $140,000 Cost]) Net Benefit -$25,000 $10,000 $20,000 $15,000 $10,000 (Total Benefit - Total Cost) Question 12 (1 point) Based on the data provided above, at what age would you recommend harvesting the stand? 25 50 75 100