Question 8 (10 points) You've been hired as a Consultant to the Big Yellow Timber Company. Big Yellow recently harvested a plot of land and is considering replanting the plot with trees designated for future harvest. If Big Yellow replants, Table 3 below gives the yearly projected growth profile of timber volume (in cubic feet). The projected price of timber is $1/cubic foot for the foreseeable future. Big Yellow's cost of capital (i.e., it's discount rate) is 4% annually. Table 3 Years from Now 0 (Now) Volume of Timber (in cubic feet) 1000 1050 1155 1328 1594 1833 2016 2117 2181 2225 Assuming Big Yellow replants, when should they harvest? If replanting costs $1,000, what is the net present value (NPV) of replanting and harvesting? Given the replanting costs from part b., would you recommend replanting? (Your answer should refer back to your net present value calculation from b.). _G_B If replanting costs $2,000, what is the net present value (NPV) of replanting and harvesting? Given the replanting cost from part d, would you recommend replanting in this case? (Your answer should refer back to the net present value calculation from d.). How would you answer e. if the projected price of a cubic foot of timber were $2/cubic foot rather than $1/cubic foot (and replanting costs are still $2,000)