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need answer asap thank you :) You own 100 acres of timberland, with young timber worth $20,000 if logged today! This represents 500 cords of

need answer asap thank you :) image text in transcribed
You own 100 acres of timberland, with young timber worth $20,000 if logged today! This represents 500 cords of wood at $40 per cord. After logging, the land can be sold today for $10,000 ($100 per acre). The opportunity cost of capital is 10%. You have made the following estimates: (i) The price of a cord of wood will increase by 5% per year. ii) The price of land will increase by 3% per year. ii) The yearly growth rate of the cords of wood on your land are: years 1-2: 15%; yeary 3-4: 10%; years 5-8: 5%; years thereafter: 2%. ase find the present value of the optimal decision. You own 100 acres of timberland, with young timber worth $20,000 if logged today! This represents 500 cords of wood at $40 per cord. After logging, the land can be sold today for $10,000 ($100 per acre). The opportunity cost of capital is 10%. You have made the following estimates: (i) The price of a cord of wood will increase by 5% per year. ii) The price of land will increase by 3% per year. ii) The yearly growth rate of the cords of wood on your land are: years 1-2: 15%; yeary 3-4: 10%; years 5-8: 5%; years thereafter: 2%. ase find the present value of the optimal decision

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