3. A Green House Operator is Growing Young Trees to Transplant to Residential Lawns. Over a 6-year period, a tree left to grow for 6 years sells for $7500. For shorter periods, the sales prices are: Sold at yr1 = $1,000; yr2 = $2,100; yr3 = 3,300; yr4 $4500; yr5 = $5,800. If the interest rate is 10%, which generates the greatest return over 6 years. Show the year 6 return for each. 1 Six Year Rotation. 3 Two Year Rotations. 2 Three year Rotations. 1 Four year rotation followed by 1 Two Year Rotation. 1 Two Year Rotation followwed by 1 Four year Rotation. Six One Year Rotations. Create a chart using Excel to Show your work.

3. A Green House Operator is Growing Young Trees to Transplant to Residential Lawns. Over a 6-year period, a tree left to grow for 6 years sells for $7500. For shorter periods, the sales prices are: Sold at yr1 = $1,000; yr2 = $2,100; yr3 = 3,300; yr4 $4500; yr5 = $5,800. If the interest rate is 10%, which generates the greatest return over 6 years. Show the year 6 return for each. 1 Six Year Rotation. 3 Two Year Rotations. 2 Three year Rotations. 1 Four year rotation followed by 1 Two Year Rotation. 1 Two Year Rotation followwed by 1 Four year Rotation. Six One Year Rotations. Create a chart using Excel to Show your work.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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