Question
please i need answer asap thank u You own 100 acres of timberland,with young timber worth 20,000 if logged today this represent 500 cords of
please i need answer asap thank u
You own 100 acres of timberland,with young timber worth 20,000 if logged today this represent 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: a) the price of a cord of wood will increase by 5% per year? b) the price of land will increase by 3% per year. c) the yearly growth rate of the cords of wood on your land are :
years 1-2: 15%:
year 3-4 :10%:
year 5-8 : 5%
years thereafter 2% please find the present value of the optimal decision.
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