time to harvest a stand of timber. The price per cubic foot of marketable timber is $10. F costs per cubic foot are $3 and one-time planting costs are $5,000. The interest rate is 4%. Stand Age (years) Volume (cubic feet) Value of Timber Costs Net Benefits 10 1,000 20 2,000 30 3,000 hat is the cost of harvesting the timber at stand age 10 years? A What is the cost of harvesting the ber at stand age 20 years? AA What is e cost of harvesting the timber at stand age 30 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 13P
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Answer the following questions about a Longleaf Pine Plantation Owner trying to determine the optimal
time to harvest a stand of timber. The price per cubic foot of marketable timber is $10. Harvesting
costs per cubic foot are $3 and one-time planting costs are $5,000. The interest rate is 4%.
Stand Age (years)
Volume (cubic feet)
Value of Timber
Costs
Net Benefits
10
1,000
20
2,000
30
3,000
What is the cost of harvesting the timber at stand age 10 years?
A What is the cost of harvesting the
timber at stand age 20 years?
What is
the cost of harvesting the timber at stand age 30 years?
Transcribed Image Text:Answer the following questions about a Longleaf Pine Plantation Owner trying to determine the optimal time to harvest a stand of timber. The price per cubic foot of marketable timber is $10. Harvesting costs per cubic foot are $3 and one-time planting costs are $5,000. The interest rate is 4%. Stand Age (years) Volume (cubic feet) Value of Timber Costs Net Benefits 10 1,000 20 2,000 30 3,000 What is the cost of harvesting the timber at stand age 10 years? A What is the cost of harvesting the timber at stand age 20 years? What is the cost of harvesting the timber at stand age 30 years?
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