How many years from now should the timber be harvested

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The University’s agriculture department asked the finance department to help decide when to harvest the trees that have been growing for the last 12 years. The value of the land without timber is $20,000. If harvested now, the timber is valued at $5,500. However the value of the timber will increase by $5,500 every year. If the university required rate of return is 10% how many years from now should the timber be harvested?

Reference no: EM132018901

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