Your friends and you decide to purchase a large tract of forest land in northern Minnesota with the intent of generating income from timber and leasing the hunting rights.

Your estimated costs and returns are as follows:

$2,000/acre purchase price of land, paid back in equal yearly installments over 15 years @ 7% annual interest. Your 1st loan payment is made in year 1.

$300/acre site preparation costs incurred immediately.

$150/acre tree planting costs incurred 1 year after purchase.

$75/acre forest management costs incurred 3, 4, 5, 6, and 7 years after purchase.

$100/acre forest management costs incurred 8, 9, and 10 years after purchase.

$50/acre annual hunting lease revenue beginning in years 1 year after purchase and continuing until 15 years after purchase.

$5/acre annual property taxes, beginning immediately and paid each year you own the land through 15 years after purchase.

$5,000/acre income from the sale of timber 14 years after purchase.

$1,800/acre from the sale of your forest land 16 years after purchase.

Your discount rate is 6%.

What is the net present value of all revenue and costs in year 12?

a. 25

b. 220

c. -82

d. -87

e. 225

f. -92

g. -175

h. 112