Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Timber price of Douglas fir is $2/cubic foot, planting cost is $1,000, marginal harvest cost ($/cubic foot) is $0.5, and discounted factor r = 0.01.
First, fill out the table below. Round the numbers to two decimal places. No dollar sign. No thousands separators.
Vol
um
Age
e (cu
(ye bic
ars feet
) ) Present value of timber cost
10 694
191
20 2
355
30 8
553
40 6
Present Value of total
Net present value of
Timber
Second, conclude that the optimal harvesting time given the information here is when the tree reaches age
Type the age as an integer.
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Transcribed Image Text:Timber price of Douglas fir is $2/cubic foot, planting cost is $1,000, marginal harvest cost ($/cubic foot) is $0.5, and discounted factor r = 0.01. First, fill out the table below. Round the numbers to two decimal places. No dollar sign. No thousands separators. Vol um Age e (cu (ye bic ars feet ) ) Present value of timber cost 10 694 191 20 2 355 30 8 553 40 6 Present Value of total Net present value of Timber Second, conclude that the optimal harvesting time given the information here is when the tree reaches age Type the age as an integer.
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