Steve believes that the pond value of lumber will increase at the ination rate. The companyr is planning to thin the forest today, and it expects to realize a positive cash ow of $1,233 per acre from thinning. The thinning is done to increase the growth rate of the remaining trees, and it is always done following a planting. The major decision the company faces is when to log the forest. When the company logs the forest, it will immediater replant saplings, which will allow for a future harvest The longer the forest is allowed to grow, the larger the harvest becomes per acre. Additionally, an older forest has a higher grade of timber. Steve has compiled the following table with the expected harvest per acre in thousands of board feet, along with the breakdown of the timber grade. Years From Todayr Harvest {MBFJ Timber Grade To Begin Harvest Per Acre 12 22 32 2t] 5 111% 4t]% 55% 25 3.2 13 4E 41 3t] 9.4 1? 43 35 35 111.5 19 51 3t}