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please solve this question showing all the details of the work and mark your answer for each option of the question . Thank you 7.
please solve this question showing all the details of the work and mark your answer for each option of the question .
Thank you
7. You buy a tree farm with 10,000 trees. This amount is also considered the carrying capacity of the tree farm. During the first year you remove 1,000 trees to sell. a. If the trees grow from seed to full grown tree in 10 years, how long would it take to replace the trees you removed from seed (in years)? If the trees replace themselves naturally using an exponential growth at r 1.5% based on the remaining trees, how long would it take to naturally replace the trees you removed from the remaining 9,000 trees (in years)? You decide instead to remove and replace trees using the principle of maximum sustainable yield. You estimate a natural replacement rate for trees is 0.5lyear. What is the maximum yield (in trees/year)? b. c. d. Using the maximum sustainable yield method (part c.), how much do you need to sell each tree for (in $/tree) to break even in 6 years if the tree farm cost $1.5 million? 7. You buy a tree farm with 10,000 trees. This amount is also considered the carrying capacity of the tree farm. During the first year you remove 1,000 trees to sell. a. If the trees grow from seed to full grown tree in 10 years, how long would it take to replace the trees you removed from seed (in years)? If the trees replace themselves naturally using an exponential growth at r 1.5% based on the remaining trees, how long would it take to naturally replace the trees you removed from the remaining 9,000 trees (in years)? You decide instead to remove and replace trees using the principle of maximum sustainable yield. You estimate a natural replacement rate for trees is 0.5lyear. What is the maximum yield (in trees/year)? b. c. d. Using the maximum sustainable yield method (part c.), how much do you need to sell each tree for (in $/tree) to break even in 6 years if the tree farm cost $1.5 millionStep by Step Solution
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