Youre managing a forestland which pays a fixed sum every year and will do so forever. On a per acre basis,

a. What is the income value of the tract if it grows 2 cords/acre/year which sells for an average price of $30/cord, given a 12% discount rate? The first payment is due exactly one year from now.

b. What would your answer to part (a) be if the first payment is received the day the tract is purchased?