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Y9 Please show all work 1. (10 points) You own a large tract of inaccessible timber. To harvest it, you have to invest a substantial
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Please show all work 1. (10 points) You own a large tract of inaccessible timber. To harvest it, you have to invest a substantial amount in access roads and other facilities. The longer you wait, the higher the investment required. On the other hand, lumber prices will rise as you wait, and the trees keep growing, although at a gradually decreasing rate. Given the following data and a 10% discount rate, when should you harvest? Year of Harvest 0 1 2 3 4 5 Net Future Value 50 64.4 77.5 89.4 100 109.4Step by Step Solution
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