One company has 10 hectares of pine forest. The shallow cut occurs at 60 years. The...

 

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One company has 10 hectares of pine forest. The shallow cut occurs at 60 years. The stand is currently 45 years old and has an average volume of 170 m3 / ha. Installation costs involve 90 euros per hectare. The management plan includes a 5-year cleaning that involves an expense of 25 euros per hectare. The average annual administration cost is € 6 per hectare. Consider the following prices: 25 and 50 euros per m3 for thinning and final cutting respectively Production Information Age 25 30 35 40 45 50 60 Operation Thinning Thinning Thinning Final cut Provide the necessary calculations for: Estimate the value of the soil Estimate the value of the 45 year old settlement Volume 20 33 55 260 One company has 10 hectares of pine forest. The shallow cut occurs at 60 years. The stand is currently 45 years old and has an average volume of 170 m3 / ha. Installation costs involve 90 euros per hectare. The management plan includes a 5-year cleaning that involves an expense of 25 euros per hectare. The average annual administration cost is € 6 per hectare. Consider the following prices: 25 and 50 euros per m3 for thinning and final cutting respectively Production Information Age 25 30 35 40 45 50 60 Operation Thinning Thinning Thinning Final cut Provide the necessary calculations for: Estimate the value of the soil Estimate the value of the 45 year old settlement Volume 20 33 55 260

Answer rating: 100% (QA)

To estimate the value of the soil we need to consider the future cash flows from the forest and discount them to their present value The value of the soil is the sum of the present values of these cas... View the full answer