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You have invested in a small pulpwood timber stand. You will harvest and sell the timber every 7 years starting today. Todays timber sale earns

You have invested in a small pulpwood timber stand. You will harvest and sell the timber every 7 years starting today. Todays timber sale earns $40,000, and you expect these profits to grow with inflation and continue forever. The annual interest rate is 8.33% and inflation is expected to be 2.52%. What is the value of the timber stand today?

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