Let’s say you are trying to decide whether to convert a specific tract of forestland to agricultural land. The choice is between agricultural uses which could offer you $25/acre/year and the current forestry practices offer you $300 every 30 years. Your cost of capital is 5%.
What land use would you select from a financial perspective?

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Step 12 Step 1 to the above mentioned question is as follows Payment Formula where rate peri... View the full answer