You purchased bare land for $500 per acre as an investment to supplement your retirement income. After three years, you plan to reforest the property at a cost of $400 per acre. You estimate your income from selective timber harvesting will be $5,000 per acre beginning 25 years after the trees are planted and occurring every 10 years thereafter in perpetuity. You have annual property taxes of $2 per acre starting next year. What is the present value of the timber harvest income from this investment, assuming a 4 percent discount rate?

Answer rating: 100% (QA)

Sure I can help you calculate the present value of the timber harvest income from your investment He... View the full answer