You are a landowner who is considering an offer by a forestry consultant. The offer states that for a cost of $4500 you can conduct a thinning operation on your forestland. If you do this, the consultant says that in 30 years when you are planning to harvest, you would earn an additional $9,000 from the harvest. Assuming an interest rate of 4% answer the following questions:

a. What is the present value of the landowners revenue after 30 years if he conducts the thinning? please show your calculations

b. Should you do the thinning?

Some equations

PV=M/i

PV=M(1+i)^t