question #4

Private discount rates are larger than social discount rates due to taxes and uncertainty of private firms lasting for long periods of time. Revisit Question #3 and recompute the value of the land using a discount rate of 13% (this is similar to that used by private forestry companies). What is the most you would be willing to pay for this parcel today? Note that the value of the land depends heavily on the discount rate, and benefits and costs received farther in the future are valued less by the private sector than the government.

Numeric Response=

problem 3 data year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 planting -500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -500 harvest 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 250000 species 20 20 20 20 15 15 10 5 0 0 -5 -10 -10 -10 -15 -15 -15 -15 -15 -10 -10 0 0 0 10 10 10 10 10 20 20 20 20 20 25 25 25 25 25 30 30 30 30 30 35 35 35 35 35 0 water quality -20 -20 -20 -20 -20 -20 -20 -20 -20 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -5 -5 -5 -5 0 0 0 0 0 5 5 5 5 5 10 10 10 10 10 10 10 10 10 10 20 20 20 20 20 0 carbon credits 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 taxes -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -5 -25005