Given..

For Questions 8-10, use the information given below to determine the financially or economically-optimum age to harvest this stand using the following relationship:

(V₁ V₀) = (V₀ C)r + Sr

Where:

V₀ = value of timber at time 0

V₁ = value of timber at time 1

C = harvest cost

S = land sale price

r = discount rate

	(ft3)
Stand	Per Acre
Age	Stand Volume
30	400
31	425
32	455
33	485
34	515
35	545
36	585
37	625
38	670
39	715
40	760
41	810
42	870
43	940
44	1010
45	1085
46	1165
47	1240
48	1300
49	1355
50	1405
51	1445
52	1485
53	1520
54	1555
55	1585
56	1615
57	1640
58	1665
59	1685
60	1705

Discount rate = 4%

Stumpage price = $2.5 per ft³

Residual land value after harvest = $1,000 per acre

Harvest cost = $300 per acre

Wildlife benefit if stand isnt harvested = $40 per acre per year

When should this stand be harvested to maximize economic value if only the timber and land values are considered (i.e., no wildlife benefit is considered)?

a. 43

b. 47

c. 50

d. 60

e. 22

f. 51

g. 48

h. 37