Question: Please detail it !! with 140 = 1 and compute four additional estimates 5. Tree cut) Suppose that you have the opportunity to plant trees
with 140 = 1 and compute four additional estimates 5. Tree cut) Suppose that you have the opportunity to plant trees that later can be for lumber. This project requires an initial outlay of money in order to purchase and pl the seedlings. No other cash flow occurs until the trees are harvested. However, you ha a choice as to when to harvest. If you harvest after 1 year, you get your return quici but if you wait, the trees will have additional growth and the revenue generated from te sale of the trees will be greater. Assume that the cash flow streams associated with these alternatives are: Wait 1 year: (-1,2) Wait 2 years: (-1, 0, 3) Wait 3 years: (1,0, 0, 4) Wait n years: (-1,0, 0,...,0, 0, n+1) The prevailing interest rate is 10%. When is the best time to cut the trees
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
