Stand regenerates naturally with no regeneration cost

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Reference no: EM13985596

A northern hardwood stand regenerates naturally, with no regeneration cost. Every 65 years, it can be harvested to yield 12/mbf/ac of hardwood sawtimber at $300/mbf and 12 cd/ac of pulpwood at $5 per cord. The annual management expenses are $2.50/ac. Assume that the discount rate is 5% (Hint: There are 3 different LEV methods)

a) Compute LEV per acre

b) Suppose that the stand is currently 35 years old. Compute the value of the 35 year old stand given the above information.

Reference no: EM13985596

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