Pv of a future stream of benefits

Assignment Help Business Management
Reference no: EM131201303

Consider a forest with 100,000 tons of standing timber and a growth rate of 5,000 tons of biomass per year. At a price of $100 per ton, what is the value of the forest if it is clear-cut versus the value of a sustainable management policy in which the annual harvest is no more than the annual growth?

a.) Using a 3% discount rate, which is economically preferable? (Hint: the formula for the PV of a future stream of benefits into perpetuity is PV = Annual Payment / Discount Rate)

b.) Which is economically preferable using a 6% discount rate?

Reference no: EM131201303

Questions Cloud

Describe at least two tools that susan could have used : Describe at least two tools that Susan could have used to assist her in the attack described within the case example, and suggest the key benefits that the chosen tools provide hackers. Justify your response.
Calculate the values of the derivative pixels : If the row and columns lie within the rectangle, the memory should return white pixel values; otherwise, it should return black
Maximum sustainable yield : Compute the population size that is compatible with the maximum sustainable yield. What would be the size of the annual catch if the population were to be sustained at this level?
What policy would you suggest to reduce the total costs : MGMT 335, Fall 2015 Case Study - INVENTORY MANAGEMENT FOR PHARMACEUTICAL INDUSTRY. What policy would you suggest to reduce the total costs? What is the anticipated gain
Pv of a future stream of benefits : Using a 3% discount rate, which is economically preferable? (Hint: the formula for the PV of a future stream of benefits into perpetuity is PV = Annual Payment / Discount Rate)
Calculate the values of the derivative pixels : Write a checker always block for inclusion in the testbench using the revised memory bus functional model of Exercise 9.10. The checker should verify that derivative pixels written to memory by the Sobel accelerator have the values determined in E..
Forestry and fishery economics often : Why are models used in forestry and fishery economics often called "bioeconomic" models?
Calculate the amplitude of the open-circuit phase voltage : Calculate the amplitude (peak value) of the open-circuit phase voltage measured when the rotor is turned at 60 rev/sec.
Limit residential development : Explain using supply and demand graphs how land use regulations, that specifically limit residential development in many areas in the U.S., might contribute to a housing bubble?

Reviews

Write a Review

Business Management Questions & Answers

  Leadership resources effective leaders stay up to date on

leadership resources effective leaders stay up to date on leadership research and theory while taking a critical eye to

  Discuss the process strategy

Determine where is the headquarter of McDonald's and are there any benefits locating there? If you could choose, where would you select and why?

  What additional awareness does a promotion budget of

In a seller's market even pathetic products are snapped up by desperate buyers because... a. first shift capacity is just sufficient to meet demand b. first shift capacity plus second shift capacity are greater than demand c. first shift capacity plu..

  Catherine believes that he is always engaging in political

Catherine believes that he is always engaging in political activity that is not in the best interests of the college. She explains him as a man who passes the buck and who is scheming and arrogant. Bernice believes that the dean is an effective ma..

  Discuss the two types of regulator action

Discuss the two types of regulator action which, according to the majority, automatically triggers compensation as takings, without a court needing to examine the circumstances in a case-specific manner.

  Endeavor that deals with a chosen topic

A research paper of 7- to 9-page endeavor that deals with a chosen topic (Alzheimer's Disease and Vitamin D) related to aging research. Only chose a primary article or multiple articles with the same topic to write the research paper. Every words ..

  Costs price and profitshow the distinctions between costs

costs price and profitshow the distinctions between costs price and profit. include a description of cost analysis and

  Understanding what motivates and engages employees

Understanding what motivates and engages employees

  Explain and create a measurement matrix in excel

Explain and Create a measurement matrix in Excel that identifies and categorizes

  Limitations and risks for the wireless technologies

How are wireless technologies used by organizations to form a communication channel with clients? Summarize the advantages and disadvantages, limitations and risks for the wireless technologies described in the article

  Important information about scenerios for organizational

important information about scenerios for organizational psychology1. organizations often consider new employees to be

  The rightof privacy

Some people believe that the rightof privacy should be extended to the workplace. Others feel that, on thecontrary, that such an extension would constitute an unwarranted incursion intothe management's right to manage.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd