Let us consider the following net future values (in millions of dollars, valued in the year of harvest) for harvesting trees. This is a one-time harvest. The cost of capital is 10%. What is the optimal year to harvest?

Year 0 1 2 3 4 5

Net Future Value 95 120 145 170 190 205

Select one:

a.Year 4

b.Year 3

c.Year 5

d.Year 1

e.Year 2