The Whispering Pines Recreation Area is considering expanding its landbase by purchasing some land, currently in agricultural fields, and converting the area to a red pine plantation, with repeated rotations through time expected.. Mountain biking trails are also planned through the area, and the timber revenue will be used to fund maintenance upkeep in its campground area into the future. How much can the recreation area administration pay per acre for the agricultural fields if they require a 7% return (to fund campground operations) and the red pine plantation has the following cash flows for each rotation:

Year 0: $550 per ac establishment cost

Years 1-75(each year): $10 per ac mountain biking revenue; $2 per acre basic trail maintenance cost

Year 30: $1,000 per ac thinning revenue

Year 15, 35, and 50: $25 per ac major trail maintenance cost

Year 55: $2,000 per ac thinning revenue

Year 75: $4,000 per ac clearcut revenue